Posts for Ticker ‘OGE’

Gas Pipeline Joint Venture Killed (OGE, ETP)

Last September OGE Energy Corp. (NYSE:OGE) and Energy Transfer Partners, L.P. (NYSE:ETP) announced a joint venture to transport natural gas from Texas and Oklahoma to California and the northeastern US. It was an ambitious project and would have been a significant player in the gas transportation space.

Alas, the companies have announced that the deal is dead. OGE’s chairman, CEO, and president said that “conditions in the financial markets are such that any partnership completed in the near term would not likely be economically beneficial to OGE.” ETP’s chairman and CEO echoed that sentiment, “We regret that the capital markets have prevented us from accomplishing our plans to combine these businesses in a strategic joint venture.”

If two major energy companies can’t line up the financing they need to form a regulated return business, this is not good news for any company.

Paul Ausick

Posted on: February 13, 2009 – 10:43 am in Oil & Gas, ,

Implications of New Natural Gas Pipeline Joint Venture (OGE, ETP, KMP)

Oil_gas_pipeline_picA 50/50 joint venture between OGE Energy (NYSE:OGE) and Energy Transfer Partners (NYSE:ETP) will create a new midstream company, currently called ETP Enogex Partners LLC, to transport natural gas from Texas and Oklahoma to markets in California and the northeastern US. OGE is contributing all of its Enogex interests to the new JV, and ETP is contributing all its interests in its Transwestern Pipeline, the ETC Canyon Pipeline, and its 50% interest in the Midcontinent Express Pipeline (the other 50% is owned by Kinder Morgan (NYSE:KMP).

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Posted on: September 23, 2008 – 8:49 am in IPOs, Oil & Gas, , ,

OGE Energy Files For Debt Sale (OGE)

OGE Energy Corp. (NYSE: OGE) has filed with the SEC for its Oklahoma Gas and Electric unit to sell up to $700 million in senior notes.

The filing says the company may offer from time to time in one or more issuances one or more series of unsecured senior notes.  The aggregate initial offering price of the senior notes that are offered will not exceed $700,000,000 and these will be offered in an amount and on terms to be determined by market conditions at the time of the offering.

OGE Energy closed yesterday at $34.02 and its 52-week trading range is $29.12 to $38.30.  Its market cap is $3.13 Billion.

You can join our open email distribution list to hear about other secondary offerings, mergers, special financings, IPO’s, restructurings, and other special situations.

Jon C. Ogg
June 6, 2008

Posted on: June 6, 2008 – 8:26 am in Secondary Offering, Utilities,

Trouble Brewing In Oil & Gas MLP Land? (PAA, OGE, DVN, XCO, VQ, WES, APC, BSR)

We have tracked these Master Limited Partnerships (MLP’s) and spin-offs or carve-out IPO’s from larger oil and gas companies for quite some time.  What is amazing is that despite the rapid rise in oil and energy-related commodities has not translated to the "peak-IPO rush" like we saw with dot.com IPO flame-outs from 1999 and 2000.  Many have been withdrawn and many have gone in limbo.

Earlier this week, Plains All American Pipeline LP (NYSE: PAA) completed a public offering of 6.9 million common units at $46.31/unit, generating net proceeds of $315 million. In February, Plains withdrew a proposed IPO for a master limited partnership (MLP) in its general partner, which may have generated much more cash.

OGE Corporation (NYSE: OGE) withdrew a proposed MLP IPO in January, citing "market volatility."

Devon Energy (NYSE: DVN) had planned an MLP IPO for the third quarter of 2007, but the offering has neither gone forward nor been withdrawn.  This one is still in the "pending" category.

EXCO Resources Inc. (NYSE: XCO) filed in September 2007 for a public offering of 75 million common units in an MLP. Exco withdrew the offer in January, stating that "current market conditions do not support the completion of the offering in a manner that would result in the value enhancement to EXCO and its shareholders that was anticipated upon the initial filing of the registration statement."

Venoco Inc. (NYSE: VQ) announced an E&P MLP in February. This one is still outstanding as it is only 3-months old.  Venoco enjoyed a $3.00/share price jump on Monday’s earnings report.

Last week we saw a pricing from Western Gas Partners L.P. (NYSE: WES),a spin-out from Anadarko Petroleum Corp. (NYSE: APC) saw a lacklusterIPO with a pricing below the indicated levels.

You can join our open email distribution list to hear about other secondary offerings, IPO’s, secondary offerings, special financings, mergers, spin-offs, and other special situations.

If you want to see an even more broad example of this trend in MLP’s, you can look at the ETF: BearLinx Alerian MLP Select Index ETN (NYSE: BSR)… This is technically an ETN, but who’s counting.  Its chart has been highly unimpressive.

It’s not all bad out there.  Some will still come public and some will still continue to do well.  We’ll be showing some other pending or withdrawn IPO’s in deals thatare similar, but aren’t going to be oil and gas or pipeline MLP IPO’s.Stay tuned.

Paul Ausick
May 15, 2008

Posted on: May 15, 2008 – 9:34 am in IPOs, Oil & Gas, , , , , , , ,

OGE Corp: Unloading OGE Enogex, Its MLP, In An IPO (OGE, OGP)

A subsidiary of OGE Corp (NYSE:OGE), OGE Enogex Partners L.P., has filed registration papers with the SEC for an IPO of 7.5 million common units in a master limited partnership (MLP) that will trade under the symbol "OGP." OGE will retain a 63.9% limited partner interest in OGP, and will also claim the 2% general partner interest.  An overallotment of 1.125 million units will be made available to the underwriters, UBS and Lehman Brothers. The IPO is expected to raise about $130 million.

OGE has a market cap of $3.42 billion and is the largest public utility in the state of Oklahoma. The mid-stream assets that it is passing along to OGP include nearly 5,500 miles of natural gas gathering systems and almost 2,300 miles of gas transmission lines from the Arkoma and Anadarko basins, and include 64 interconnection points with other pipelines transporting gas to the west.

As pipeline MLPs go, OGP will be relatively small; Kinder Morgan owns and operates more than 15,000 miles of natural gas pipelines. But, OGP starts life with a ‘AAA’ rating from Fitch Ratings. That’s a good thing, particularly as MLPs are notorious borrowers. Leverage of 50% or even more is not uncommon as these partnerships try to keep returns flowing both to their parent companies and to the limited partners. OGE has been well-managed and its Enogex subsidiary have been well-managed to this point, and Fitch is betting that will continue. As OGP tries to keep its returns high, the temptations will be many.

Paul Ausick
July 2, 2007

Posted on: July 2, 2007 – 10:40 am in IPOs, Oil & Gas, ,