LP (BCP) has closed its
debut private equity fund, BCP Energy
Services Fund LP. The
fund plans to invest in
North American service
companies across the
and power verticals.
served as exclusive global placement agent and
Kirkland & Ellis served
as legal counsel for the
Fund. Launched in 2014,
BCP has raised over $750
million in capital commitments.
Holdings LLC has
partnered with Old
Ironsides Energy LLC, an
independent oil and gas
investment manager, to
pursue midstream infrastructure acquisition and
North America. Formed
in 2015, Discovery is a
company based in
SPECTRA ENERGY, TRANSCANADA TO
BUILD NATURAL GAS PIPELINE TO MEXICO
Spectra Energy Corp. and TransCanada Corp.
have been chosen to build, own, and operate
natural gas infrastructure pipeline from Texas to
Tuxpan, Veracruz, Mexico. The $3.6 billion project
will be used to supply North American shale gas
to power plants in Mexico.
Spectra Energy subsidiary Valley Crossing Pipeline LLC was awarded a 168-mile intrastate natural
gas pipeline project by the Comisión Federal de
Electricidad (CFE) – Mexico’s state-owned utility
– to provide natural gas transportation services
beginning in 2018.
Valley Crossing will construct and operate a
header system of more than 5 billion cubic feet
per day near the Agua Dulce Hub in Nueces
County, Texas, as well as a 2. 6 bcf/d pipeline
originating at that header and extending to
Brownsville, Texas. There, the pipeline will connect
with the Sur de Texas – Tuxpan pipeline, which
will extend into Tuxpan, in the state of Veracruz
TransCanada’s joint venture with IEnova, In-fraestructura Marina del Golfo (IMG), has been
chosen to build, own and operate the US$2.1
billion Sur de Texas-Tuxpan natural gas pipeline
in Mexico. The project will be supported by a
25-year natural gas transportation service contract
for 2. 6 billion cubic feet a day with CFE.
The bid for the Sur de Texas-Tuxpan project
was presented in partnership with IEnova, a subsidiary of Sempra Energy. TransCanada will develop, operate and own 60% of this project, with
IEnova owning 40%.
TransCanada expects to invest approximately
US$1.3 billion in the partnership to construct the
pipeline and anticipates an in-service date of late
In addition to a connection with CENAGAS’s
pipeline system in Altamira, the project will inter-connect with TransCanada’s Tamazunchale and
Tuxpan-Tula pipelines as well as with other transporters in the region.
ENLINK TO EXPAND IN MIDLAND BASIN
A subsidiary of EnLink Midstream Partners LP and
EnLink Midstream LLC will construct a new crude
oil gathering system, called the Greater Chickadee crude oil gathering project, in Upton and
Midland counties in the Permian Basin. The partnership will invest approximately $70 million to
$80 million to build Greater Chickadee, which will
include over 150 miles of high- and low-pressure
pipelines that will transport crude oil volumes to
several major market outlets and other key hub
centers in the Midland, Texas, area. The initial
phase of Greater Chickadee will be operational
in the second half of this year with full service
expected early next year.
Greater Chickadee is supported by long-term,
fee-based agreements with Permian Basin producers. The project includes approximately 35,000
dedicated acres in Upton County. Current production from this dedicated acreage is over 10,000
barrels per day.
SEMGROUP TO ACQUIRE ROSE ROCK
SemGroup Corp. will acquire all of the outstanding common units of Rose Rock Midstream not
already owned by SemGroup in an all stock-for-unit transaction at a ratio of 0.8136 SemGroup
common shares per Rose Rock common unit. The
implied Rose Rock unit price represents a 7.4%
and 19.2% premium to its volume-weighted average prices during the 10-trading days and
20-trading days ending May 27, 2016,
Following completion of the transaction,
SemGroup is targeting an 8% compound annual
dividend growth rate and dividend coverage of
1. 5 times or greater through 2018.
The transaction is subject to the approval of
the SemGroup shareholders and common
unitholders of Rose Rock. SemGroup owns 56%
of the Rose Rock common units, which is sufficient
to approve the transaction on behalf of the holders of Rose Rock common units. Rose Rock will
no longer be publicly traded and related IDRs
will be eliminated. Subject to customary approvals
and conditions, the transaction is expected to
close in the third quarter of 2016.
“The transaction simplifies the corporate capital structure and is expected to improve the
entity’s cost of capital,” noted Brian Kessens,
managing director and portfolio manager at Tortoise Capital Advisors in a Tortoise podcast following the announcement.
Barclays and Citi acted as financial advisors
and Gibson, Dunn & Crutcher LLP acted as legal
counsel to SemGroup. Potter Anderson & Corroon LLP acted as legal counsel to the SemGroup
board. Evercore Group LLC acted as financial
advisors and Akin Gump Strauss Hauer & Feld
LLP and Morris, Nichols, Arsht & Tunnell LLP acted
as legal advisors to the Conflicts Committee of
the general partner of Rose Rock.