February 18 , 2010 •Volume 03, No. 03 MIDSTREAM NEWS · 2011-03-15 · Valero Energy Corp. lost...

All Standard Disclaimers & Seller Rights Apply.

Canada one step closer to Kitimat LNG exportApache buying 51% of Kitimat

The Kitimat LNG terminal in British Columbia is one step closer to fruition after ApacheCanada Ltd. agreed to take a 51% share in Kitimat LNG Inc. Apache previously claimed 51%of Kitimat’s projected processing capacity. The $3.0 billion project will export natural gas pro-

duction from Canada as LNG to fast growing Pacific Basin LNG markets inAsia. The terminal, located near Bish Cove, which is adjacent to the Port ofKitimat, is located 405 miles north of Vancouver.

If the project goes as planned, the firstLNG shipments will begin in 2014.

Kitimat has a planned capacity of 5 mil-lion metric tons LNG/year, linking westernCanada’s pipeline system via the proposed Pacific Trail Pipelines, a 300-mile project thatwould originate at Summit Lake in B.C.

Following this acquisition of a 51% stake in the project, Apache would have a 25.5% sharein the pipeline that is currently a partnership between Pacific Northern Gas and Galveston LNG.

Kitimat was proposed five years ago for a 600 MMCFD import terminal before runninginto a series of postponements.

Western pays $254 MM for Anadarko’s Wyoming midstreamWestern Gas Partners LP bought midstream gas assets in SW Wyoming from Anadarko

Petroleum for $254.4 million. CEO Don Sinclair said Western believes the assets have significantpotential for organic growth by serving the prolific Moxa, Pinedale, and Jonah fields.

Assets involved in the transaction include Anadarko’s 100% ownership interestin two systems — the GrangerGathering System, a 750-mile gath-

ering system with related compression andother facilities, and the Granger Plants, whichare two cryogenic trains with combined capacity of 200 MMCFD, two refrigeration trains withcapacity of 145 MMCFD, an NGL fractionation facility with capacity of 9,500 BPD, andperipheral equipment.

Total average throughput on these systems for Q4 2009 was ~240 MMCFD, with abouthalf of that from Anadarko. Contracts regarding the systems’ Anadarko-affiliated throughputwere converted recently into 10-year fee-based arrangements. To mitigate the remaining com-modity price risk associated with this acquisition, Western Gas and Anadarko entered fixed-price swap agreements through 2014.

Valero Energy wrestling with refinery portfolioGlobal recession has been difficult for refiners

Integrated refiners with substantial downstream positions have encountered difficultoperating conditions during the global recession.

Valero Energy Corp. lost nearly $2.0 billion in 2009 — most of it in Q4. It had a Q4 netloss of $1.41 billion, compared to a loss of $3.28 billion in Q4 2008. Valero plansto cut $100 million in costs in 2010.

“While 2009 may have been the bottom for refining profitability, there’s toomuch inventory and spare refining capacity in the industry right now for margins to reboundquickly,” CEO Bill Klesse said.

Valero announced November 20 that itwould mothball its 210,000 BPD DelawareCity, Del. refinery, citing “financial lossescaused by very poor economic conditions, significant capital spending requirements and highoperating costs. Currently the company is in discussions about selling the Delaware City assetsto an investment group headed by the former CEO of Petroplus, Thomas O’Malley, who isalso the former owner of the plant.

Furthermore, Valero was reported to have been in talks with UBS to negotiate a sale of its195,000 BOPD Paulsboro, N.J. refinery, though Valero has thus far declined to confirm that report.However in October, Valero announced that it was exploring its options for three refineries includingthe Delaware facility, and the one at Paulsboro in Gloucester County.

February 18, 2010 • Volume 03, No. 03

MIDSTREAMNEWSServing the marketplace with research, insight and transaction opportunities

Gas from northern Canada headed to asia.

independent refiners, like Big oil,grapple with excess capacity.

western Gas looking at growth in themoxa, pinedale and Jonah fields.

apaChe continues on page 13

valero continues on page 6

ARKANSAS MIDSTREAM INTERESTSWells Operated By Seller.HAYNESVILLE SHALE HAYNESVILLESubstantial & Rapidly Growing EBITDA.Third Party Agreements In Place.

G 2725

EAST TEXAS GATHERING SYSTEM8-Mile Gas Pipeline.MARSHALL/HARRISON AREANear Penn Virginia Well. Cotton Valley, Travis Peak.MultiPay East Texas Reservoirs. 10 MMCFDHaynesville Development Possible. PIPELINEPipeline Capacity: 10,000 MCFDMultiple Line Right-Of-Way. High Pressure Line.Interconnects w/ Two Main ETX Lines.SUBJECT TO PRIOR SALE

G 1425PL

HOUSTON CO., TX PROSPECTResource & Conventional Play.WILCOX, DEXTER, BUDA & GEORGETOWN Depth Ranges: 2,500 Ft. - 10,300 Ft.AVO Signatures. Offsetting Production. 3-D Defined.High Oil/Condensate Yields. 117 BCFE75% Working Interest Available.Total Estimated Reserves: 117 BCFETotal Prospect Cost: $2,700,000

DV 3708

FEATURED LISTINGS

Williams undergoes $12 Bmidstream restructure

Williams Companies and WilliamsPartners will combine pipeline and process-ing operations in a $12 billion restructuring

that will improve access tocapital and provide expansionopportunities while geneerat-

ing $3.5 billion cash to Williams Companiesfor oil and gas development.

The restructuring calls for WilliamsCos. to contribute its pipeline and domesticmidstream businesses, plus its limited andgeneral partner interests in WilliamsPipeline Partners, into Williams Partners.

The gas pipeline assets include 100% ofTranscontinental Gas Pipe Line, 65% ofNorthwest Pipeline, and 24.5% of GulfstreamPipeline. Williams will also contribute itsgeneral partner and limited partner interestsin Williams Pipeline Partners, which ownsthe remaining 35% of Northwest Pipeline.

Change tweaks williams’ alreadyformidable midstream asset structure.

williams continues on page 2

MIDSTREAMNEWS Wednesday, February 18, 2010 2

www.plsx.com Call PLS To Place Your Listing: (713) 650-1212

Welcome to PLS’MidstreamNews,a regular report on

market information, including news and analysison gas gathering, marketing, pipelines, mergers,acquisitions, capital and corporate performance.The report also includes interviews with leadingmidstream and downstream executives.

In addition to the news, this report also containslistings for sale including midstream and down-stream projects and midstream infrastructurecontent. Anonymous listings are coded alpha-numerically. Clients interested in accessing onlylisted package information can call (or email) PLSand provide the listing codes.

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MIDSTREAMNEWS

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How To UseA note from PLS analystsTake a hint, gas bears. The people on the front line—industry—are quietly casting

votes in favor of gas market viability. That theme can be found in most of the headlines inthis edition of PLS Midstream News. Certainly the major news is Apache Canada stepping up for a 51

percent stake in the proposed C$3 billion LNG export terminal at Kitimat,B.C., which will connect the shale plays in Canada’s western provinces withmarkets in Asia. It is one more datapoint signaling that the Canadian energy industry isevolving beyond being a supplier solely to the U.S. Canadian producers recognize that there are global outlets for that nation’s expanding

resource base and are building the infrastructure to get there. Elsewhere, Western Gas Partners anted up $254 million to purchase Anadarko

Petroleum’s midstream assets in southwest Wyoming. The deal underscores Western’sexpectations that Rocky Mountain gas production in Jonah/Pinedale and the Moxa Archhas significant upside. Apparently, the “Ayes” have it when it comes to midstream gas.

Comparison of WPZ Pre- and Post-Transaction

Note: 2010E estimates and pro forma coverage represent midpoint of guidance.1. Pro forma Firm Value assumes WPZ trades to a range of 6.6%-7.9% based on the range of the Diversified Peers.Firm Value equals market value of LP units, plus GP value, plus net debt.

2. As of 01/15/10.Source: Williams Strategic Restructuring Transaction presentation, January 19, 2010.

Williams undergoes $12 billion restructureWilliams will contribute, large-scale operations in the Rocky Mountain and Gulf Coast

regions, as well as its recently added business in Pennsylvania’s Marcellus Shale. These assetsencompass seven processing trains totaling 2.3 BCFD capacity in the Rockies, and four trains onthe Gulf Coast, which are integrated with five major deepwater oil and gas pipeline systems, andtwo production handling platforms serving deepwater GOM producers.

As consideration for the assets, Williams will receive from Williams Partners cash pro-ceeds of about $3.5 billion plus 203 million limited partner units, and will maintain its 2%general interest. Williams Partners also will assume ~$2.0 billion of existing debt associatedwith the pipeline assets.

In other news, Williams Cos. has executed precedent agreements for a proposed Transcopipeline expansion project to provide an additional ~139 MMCFD of incremental firm natural gastransportation capacity to serve growing markets in the Mid-Atlantic region by November 2012.

The Mid-Atlantic Connector expansion project will run from an interconnection withEast Tennessee Natural Gas in Rockingham County, N.C., to delivery points as far northas Maryland. Other supply points in the path of the project include interconnects withColumbia Gas Transmission, Dominion Transmission and Dominion Cove Point.

CONTINUED from page 1

Gasco Energy sells Utah gathering assets for $23 millionGasco Energy will sell its Riverbend midstream assets to Metalmark Capital Partners

unit Monarch Natural Gas for $23 million. Assets involved are in the Uinta Basin of Utah,including a 105-mile large-diameter mainline gathering system, related compression equip-

ment, a 55,000 MMBTU gas processing plant, dehydrators and other above-groundfacilities, as well as saltwater evaporative facilities.

Also, Gasco will enter into a transition services agreement to provide someservices related to the assets’

operation for six months, as well as a sepa-rate gas gathering and saltwater disposalservice with Monarch.

King Grant, Gasco’s President and CFO, said the proceeds will allow Gasco to strengthenits balance sheet and to repay debt. At the same time the gas gathering agreement assuresGasco that its natural gas will be able to move to market.

Gasco is evaluating 2010 capex for Riverbend Mancos shale completions and recomple-tions, which it expects to announce, along with 2009 proved reserves, shortly.

Wednesday, February 18, 2010 MIDSTREAMNEWS3

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A&DNewsEnergy Transfer buys Haynesville midstream from Tristate

Energy Transfer Partners increased its Haynesville holdings through the acquisition ofTristate Midstream LP gas gathering and treatment assets. Terms were not disclosed.

Energy Transfer will buy the corporate entities of Tristate North Louisiana Mainstream LLCand TSM Treating LLC, the owners of a 120-mile gathering system with a 275 MMCFD gas capac-

ity, as well as gas treating facilities with ~480 MMCFD capacity. Upon closing, EnergyTransfer will increase its acreage dedications in the Haynesville to 100,000 acres. TheTristate assets include significantlong-term acreage dedications.

Tristate Midstream is a portfolio com-pany of Energy Spectrum.

The gathering network will tie into a number of pipelines, including Energy Transfer’splanned Tiger Pipeline. Energy Transfer has expanded capacity on Tiger with a binding, 10-year agreement with the project’s foundation shipper for 400 MMCFD capacity, bringing thepipeline’s long-term contractual commitments up to 2.4 BCFD.

The ~180-mile, 42-inch gas pipeline system, announced in January 2009, will serveLouisiana’s Haynesville production and East Texas’ Carthage Hub area, and will have seveninterconnects with major interstate pipelines serving the eastern half of the United States.

In other news, Heckmann Corp. and Energy Transfer Partners have agreed to developand implement transportation and treatment solutions for supply, drilling, flowback, well-pro-duced and other discharged waters generated in both the Marcellus and Haynesville shale gasplays. The joint venture will be 50:50 funded and operated.

energy transfer also expands tigerpipeline long-term contracts to 2.4 BCFd.

deal strengthens Gasco’s balance sheetand assures gas will move to market.

Buckeye sells 350-mile NGL pipeline to DCP for $22 millionDCP Midstream Partners has purchased Buckeye Partners’ 30-mile interstate NGL

pipeline. The pipeline, which originates in the Denver-Julesberg Basin of Colorado and termi-nates near the Conway hub in Buston, Kansas, sold for $22 million in cash. DCP is the largestmidstream operator in the DJ Basin.

DCP Midstream, which owns DCP’s general partner, currently usesthe pipeline as an outlet to market some of its DJ Basin NGL production.

The partnership expects to spend ~$18 million in expansion capitalto connect and integrate the acquired pipeline with DCP Midstream’s facilities.

Per the acquisition, DCP and the partnership have agreed to a 10-year transportation agree-ment. “Given the pipeline’s proximity to DCP Midstream’s existing gathering and processingfacilities, this acquisition and subsequent capital projects represent a strategic investment forthe DCP enterprise. The investment is consistent with our strategies of optimizing our asset baseand executing on growth opportunities around our footprint. The 100% fee-based earnings pro-file of this pipeline is an excellent fit without our asset portfolio,” said CEO Mark Borer.

Frontier Gas buys twoFayetteville gathering systems

Frontier Gas Services bought two gasgathering systems in the Fayetteville shale.The assets, located in Faulkner and ConwayCounties, Ark., include about 20,000 hpleased compression, two gas treatment facili-ties and some 38 miles of 9-, 10-, 12-, and 16-inch steel gathering pipe, with the capacity atthis time to deliver upwards of 100 MMCFDinto the Ozark and Boardwalk pipelines.

Frontier Gas intends to expand thisinfrastructure to include a project to intercon-nect with the Fayetteville Express Pipelinenext year.

Chesapeake Energy Marketing hasdeclared interest in an area neighboring thetwo new Frontier Gas gathering systems, andis pursuing a drilling program.

Frontier Gas is a JV of EnergySpectrum Partners V LP and TPF II LP,which are both private equities, backing mid-stream segment manager and operator,Frontier Energy Services LLC.

Blackwater Midstream buysGeorgia terminal for $1.8 MM

Blackwater Midstream is acquiring aliquid terminal facility in Bruswick, Ga., for$1.8 million. The deal is expected to closeduring this quarter.

The terminal provides 160,000 bbl ofstorage capacity on six acres currentlyleased from the Georgia Port Authority,accessible for ocean vessels, inland barges,railcars and tank trucks.

The facility site includes room to buildanother 150,000 bbl of storage capacity.

“The Brunswick facility acquisition is akey addition to our business. It is strategicallylocated between the crowded Savannah andJacksonville markets, and will serve ourpotential customers’ product distributionrequirements as a full service terminal stor-age facility,” CEO Mike Suder said.

Blackwater Midstream, a member of theInternational Liquid Terminal Association, isan independent operator of bulk liquid stor-age terminals to include a facility in the Portof New Orleans in Westwego, La., that con-sists of 902,000 bbl capacity.

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Burks Oil & Gas Properties, Inc.

Ph: (281) 580-4590

www.burksoilandgas.com

Red River Lateral/Haynesville 2.1 BCFD expansion onstreamThe Haynesville Expansion Project and Red River Lateral, which increase the total

Regency Intrastate Gas System capacity by ~ 2.1 BCFD, are now in service. The assets com-prise a JV among Regency Energy Partners, Alinda Capital Partners, and a GE EnergyFinancial Services affiliate.

“We continue to see impressive drilling results in the Haynesville Shale, andthe joint venture is evaluating additional expansions to RIGS, which we believe iswell positioned for future growth in the region,” Regency CEO Byron Kelley said.

The projects are underwritten by firm transportation agreements with 10-year terms, and~85% of projected revenues are expected to come from reservation fees.


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Enbridge expands East Texassystem to Haynesville

Dramatic drilling results in unconven-tional plays continue to draw new takeawaycapacity. Enbridge Energy Partners will

expand its East Texas GasGathering System by construct-ing three lateral pipelines intoHaynesville Shale producing

areas in East Texas together with an addi-tional large diameter lateral from Shelby Co.to Carthage, Texas.

The Haynesville Shale expansion willboost the partnership's takeaway capacityfrom Shelby, Nacogdoches and SanAugustine County to 900 MMCFD.

The company has secured commitmentsof more than 400 MMCFD and 50,000 acres.Enbridge is also in negotiations with produc-ers who plan program expansion in the EastTexas Haynesville. Terrance L. McGill, pres-ident of the partnership's management com-pany and of its general partner, expects newcapacity to be filled based on producer plans.

The project will cost an estimated$141.8 million and includes ~50 miles of 16-inch to 24-inch diameter pipe, all in Shelby,Nacogdoches and San Augustine Co., as wellas an additional 38-mile, 24-inch lateral fromShelby Co. to Carthage. The project may alsoinclude a treating facility and additional com-pressor units to boost capacity out of the area.

For news on Enbridge’s Canadian oper-ations, see story on Page 10.

MidstreamNews

Quest Midstream links PEPLand KPC pipelines

Quest Midstream Partners’ KPCPipeline and Panhandle EasternPipe Line Co. have finished theSpivey Interconnect in HarperCounty, Kansas.

This interconnect is bi-direc-tional with a capacity of 55 MMCFD, allow-ing KPC and PEPL shippers to access deliv-ery points on both systems.

Quest Resource formed QMLP by toacquire and develop transmission and gath-ering assets in the midstream sector. It ownsmore than 2,000 miles of gatheringpipelines and more than 1,100 miles ofinterstate gas transmission pipelines inOklahoma, Kansas and Missouri.

Cardinal building gas storage cavern near Delhi, LouisianaCardinal Gas Storage Partners sub Perryville Gas Storage received FERC go-ahead

to build a gas storage facility, about 15 miles SW of Delhi, Louisiana.Perryville will develop a high deliverability salt cavern gas storage facility for which theheader system will provide storage customers with access to the major Northeastern,Gulf Coast and Southeastern markets through the Perryville Hub. The hub has majorinterstate pipeline connections.

The header system initially will connect to the Columbia Gulf Transmission andCenterPoint Energy Gas Transmission pipelines. Capacity for the first cavern is

fully contracted.“We are pleased that the FERC approved our application in a timely manner allowing us

to maintain our schedule of bringing the first cavern on line in late 2012. As demonstrated byselling 100% of the capacity in the first cavern in the current market, the Perryville project hasan exceptional location, one that we expect to be the primary liquidity point for natural gas inthe United States,” Cardinal CEO Jeff Ballew said. “Combined with our Cadeville reservoirproject being developed near the Perryville-Delhi area, we look forward to working with themarketplace to provide a menu of storage solutions for this strategic and dynamic location.”

Cardinal is a JV between Martin Resource Management and Energy Capital Partners.Martin owns a 100% general partner interest and 40% limited partner interest in MartinMidstream Partners. Energy Capital is an equity firm focused on power plants, utility trans-mission, fuel handling and midstream gas in North America.

Buckeye and NOVA enter Marcellus NGL pipeline JVBuckeye Partners and NOVA Chemicals have entered an agreement for development of

a mixed NGL pipeline from Pennsylvania’s Marcellus Basin to the refining/petrochemicalcomplex in the Sarnia-Lambton area in Ontario.

The so-called Union Pipeline Project would ship mixed NGL primarily for use as petro-chemical feedstock, diversifying supply for NOVA and providing Marcellus pro-ducers with NGL takeaway capacity to the closest demand center.

Initial service of the Union Pipeline would be from Pittsburgh to the NOVACorunna olefins cracker near Sarnia, which is a market that has historically hadlimited NGL feedstock access.

The MOU calls for Buckeye to develop, construct, own and operate the Union Pipeline,and conduct an open season for additional subscribers in the Sarnia destination market.

Right now, Buckeye owns ~5,400 miles of refined product pipelines, with a major pres-ence in the Northeast and Midwest.

Shale plays cause second guessing on Alaska Gas PipelineRamped up production from booming domestic shale plays has created an abundance of gas

on the market, potentially impacting discussions about a proposed Alaska Gas Pipeline thatwould connect to the lower 48.

Still,a federal coordinator told Congress on February 2 that the U.S. marketwill require additional gas production from Alaska as utilities switch powerplants to gas over the next 10 years.

Alaska holds ~35 TCF of gas reserves, and two pipeline projects are com-peting to bring ~4.0 BCFD from the North Slope to the continental United States.

One of the pipeline projects is a consortium of ExxonMobil and TransCanada, and theother is a BP and ConocoPhillips proposal.

The pipeline was first proposed in the 1970s, before shale drilling became widely realized,though shale development has now unlocked massive reserves in the lower contiguous 48 states.

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Montana governor wants access to TransCanada oil pipeline In a pre-emptive move to make sure Montana producers get market price for their oil,

Montana governor Brian Schweitzer wants oil companies in his state and North Dakota tobe able to tap into a proposed TransCanada Keystone XL Pipeline. The pipeline will run

from Alberta to the U.S. Gulf Coast. Schweitzer has asked the state PublicService Commission to “onramp” for the region's oil near Baker, according toEnergy Pipeline News.

That could help oil companies in the two states get better prices for their fuel, which is nowoften sold at a discount because of shipping con-straints, Schweitzer said. In Eastern Montanaand Western Dakota, oil is priced at a discountof $8.00 to $12.00 below market. Schweitzersaid the “onramp” could encourage new drilling,which has lagged in recent months due to the ailing economy and a temporary drop in oil prices.

Final approval is pending for TransCanada’s 1,980-mile Keystone XL Pipeline. The com-pany hopes to start construction sometime this year.

On February 2, the Montana Public Service Commission ruled the pipeline is a commoncarrier and TransCanada must apply to build the 280-mile portion through the state; the com-mission could require it to build connections for receipt and delivery in Montana. The projectinvolves a 1,980 mile pieline connecting Canada with Cushing Oklahoma, then extending tothe refinging complexs on the Texas Gulf Coast.


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MidstreamNews

a Keystone pipeline “onramp” wouldimprove oil prices for montana and northdakota producers.

FinancialKinder Morgan Partner’s Q4 2009 points to bright future

Never mind the recession – Kinder Morgan Energy Partners’ earnings were up in 2009for products and gas pipelines, terminals, and Canadian operations. The pipeline companyreported a 30% increase in Q4 2009 profit.

“KMP had a very strong fourth quarter and year, overcoming lingering economicheadwinds,” CEO Richard D. Kinder said. “Our stable, cash producing assets, combinedwith reduced internal costs and lowerinterest rates, helped offset various eco-

nomic headwinds that impacted our businessesduring 2009, including lower refined productstransportation volumes, decreased steel handling at our bulk terminals, lower crude oil prices anda difficult business environment for our Texas Intrastate Pipelines.”

The company earned ~$367 million in net income on Q4 revenues of $1.9 billion, com-pared with $281 million net income on revenues of $2.3 billion for the same quarter in 2008.

For the year, KMPs earned net income of $1.32 billion on revenues of $7 billion, com-pared to net income in 2008 of $1.33 billion on revenues of $11.7 billion.

KMP will buy four terminals in the Midwest from Slay Industries for ~$98 million.The assets include a marine terminal in Sauget, Ill., a transload liquid operation inMuscatine, Iowa, a liquid bulk terminal in St. Louis, Mo., and a warehousing distributioncenter in St. Louis.

KMP is also purchasing three handling terminals in Baltimore, Dallas and Linden, N.J. –from U.S. Development Group, for $195 million in an attempt to create a nationwide networkfor ethanol distribution. The acquisition price includes $80 million in KMP equity issued tothe seller. Along with Kinder Morgan’s existing ethanol terminals, these three facilities will beconnected by rail, marine, truck, and pipeline.

The company will form a JV with U.S. Development Group to manage network access.With the new terminal and pipeline venture, and existing operations, KMP expects to handleupwards of 218,000 BPD of ethanol this year, and has so far invested ~$500 million in therenewable fuels handling business.

Kmp continues to overcome economicheadwinds.

U.S. & Global M&A Transactions DatabaseFor information go to www.plsx.com/maor email [email protected]

Crosstex completes long-termrecapitalization plan

Crosstex Energy LP and CrosstexEnergy Inc. completed a recapitalization plan,creating a long-term capital structure withincreased financial flexibility. Under the recap-

italization, the partnership has closeda new $420 million senior securedrevolving credit facility with a four-year term. The partnership has alsocompleted the previously announced

private placement of $725 million principalamount of 8.875% senior unsecured notes dueFebruary 15, 2018. The partnership used thenet proceeds from the senior unsecured notesoffering, together with borrowings under itsnew credit facility, to repay all borrowings out-standing under its previous revolving creditfacility, and retire its senior secured notes andto pay related fees.

Crosstex also recently closed on the saleof its gathering and treatment midstreamassets in East Texas, to Waskom GasProcessing, for $40 million. Proceeds will beapplied to debt service.

Over the last year, Crosstex strengthenedits balance sheet through the sale of non-coreassets for $622 million, which the companysaid, represents value in a tough market, andthrough the placement of $125 million in con-vertible preferred units with theBlackstone/GSO Capital Solutions funds.CEO Barry E. Davis said “We continue to opti-mize our assets, lower our business risks, andmake investments where we see the highestgrowth opportunities. Strong execution of thesestrategic initiatives, along with our successfulrecapitalization, have significantly improvedour cash flow and reduced our leverage.”

For more insight and analysis on midstream,look for your email AlertSubscribe by calling Susan Coburn at (713) 600-0122

MarketAnalysis

Midstream


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Refining/DownstreamChevron Q4 downstream down, streamlining underway

Recurring low margins and reduced throughput negatively impacted Chevron refining mar-gins, which declined 23% year over year in the United States, 45% in Europe and 59% in Asia.

Chevron’s Q4 2009 midstream loss of $613 million contrasts with gains in Q4 2008 of$2 billion, and $194 million in Q3 2009.

Its Q4 2009 margins were 39% lower than Q4 2008 for its Gulf Coast refiner-ies, about 59% lower in Singapore and 45% lower in Europe. The company

expects its downstream streamlining to be in effect by Q3 2010.This midstream/downstream loss of $613 million is the primary reason for significantly

lower overall earnings. For its global operations, Chevron’s Q4 2009 earnings were $3.07 billion– down 28% from Q4 2008, and down 11%from Q3 2009. The company expects its down-stream trimming to take effect by Q3 2010.

“In the fourth quarter 2009, earnings inour upstream business benefited from higher crude oil prices than in the same quarter in2008,” said CEO John Watson. “In our downstream business, our operated refineries contin-ued to run reliably during the fourth quarter. However, this operational success did not offsetthe effects of low margins on the sale of gasoline and other refined products due to weakdemand and excess supply worldwide.”

Like its global competitors and the energy industry in general, particularly in the West,Chevron is taking a hard look at unconventional production positioning. Chevron’s GorgonLNG project in Western Australia has entered long-term binding agreements for the deliveryof ~4.4 million MTY, and non-binding agreements for 2.1 million MTY.

For related coverage/analysis, see the PLS CapitalMarkets publication.

Valero continues streamlining, adjustingSunoco in November idled its Eagle Point refinery, shifting operations away form

Gloucester County. Valero’s Gloucester County refinery is its last one on the East Coast.Down in the Caribbean, a tax dispute that buffeted Valero Aruba’s 235,000-BPD refin-

ery on the island nation of Aruba may be soon resolved. The long-running impasse hin-dered Valero’s sale of the refinery, which was idled in July. The refinery accounted for athird of Aruba’s GDP.

Valero said it will pay ~$130 million if Aruba’s Parliament approves an agreementbetween Valero and the country’s government that would keep Valero workers on the refin-ery’s payroll until June 1.

PetroChina recently took over a lease for 5 MMBBL crude terminal space and mayacquire the refinery.

Also per the agreement, Valero shall pay no less than $10 million/year to the Aruban gov-ernment for upcoming years.

Valero purchased the refinery in 2004 for $465 million from El Paso Corp., which camewith a six year exemption from certain taxes. Then, the government in 2007 adopted a new taxduring a time of record profits for refiners.

Like other integrated refiners (as well as the Oil Majors), Valero is posturing to improveits downstream position and taking steps to accommodate unconventional energy.

Valero Renewable Fuels Co. recently closed on its purchase ofa Jefferson, Wis., ethanol plant for $72 million, from Renew Energy.

The Valero subsidiary’s acquisition of the ethanol plant, which hasan annual production capacity of 110 million gallons, makes a totalof 10 ethanol plants, with a combined production capacity of 1.1 bil-lion gallons per year. It makes Valero, which is already the nation’sbiggest refiner, one of the nation’s biggest producers of ethanol.

Big oil strategically leaving recessionbehind.

FormoreenergyfinancecoverageseePLS,Inc.CapitalMarketsnewsletter

Continued from page 1

Experienced. Capable. Knowledgeable.Flexible. Ready To Work.Five States Energy Capital works with independent producers to acquire, develop, exploit & service producing properties.

For more information: www.fivestates.com or 214.363.3008

S&P sees positive future inregulated utilities

Regulated utility companies should pullthrough the recession sustaining little long-termeffect on the segment’s collective risk profile.Based on a report titled “Slightly PositiveOutlook for U.S. Regulated Electric UtilitiesSupports Rating Stability,” Standard & Poor’sRatings Services believes ratings and outlooksought to remain “predominately unchanged,even if economic conditions worsen in the nearterm. However, if lack of economic growth per-sists for an extended period, regulatory riskcould rise if concerns about the plight ofratepayers leads to resistance to rate increases,”S&P analysts said January 29.

States and the federal government willhave the most influence on utility creditratings, which will increase cost on capitalprojects. Lower load growth in conjunctionwith environmental regulation will promptutilities to increase rates “amid possiblygrowing consumer unrest related to jobsand the economy in general,” the S&P analysts advised.

Gulf Oil gas stationsBranding coast to coast

Gulf Oil LP has acquired all rights touse the Gulf brand in the United States fromChevron. The brand is 110 years old but its

use has been limited to 11 north-east states for the last 20 yearsthrough a licensing agreementbetween Gulf Oil’s parent com-

pany Cumberland Farms and Chevron. GulfOil acquired all rights title and interest effec-tive January 12 to the Gulf marketing brand inthe United States and intends to expand thebrand recognition all across the Lower 48.

“In September of 2005 we initiated anextensive overhaul of the marketing and busi-ness strategy surrounding the Gulf brand,”said Gulf’s Chief Sales and MarketingOfficer Rick Dery. “During the past twoyears we have enjoyed unparalleled growth inoverall station count, and we have over-whelmingly improved the quality and caliberof our entire retail station portfolio.”

Gulf is based in Framingham, Mass. andis one of the Northeast’s biggest wholesalersof refined petroleum products. Gulf distrib-utes gasoline and diesel through a network ofmore than 2,000 branded retailers, 12 propri-etary terminals, and a network of more than 50other supply terminals. Through its unbrandedsubsidiary, Great Island Energy, Gulf also sup-plies petroleum products and risk manage-ment and financial services to industrial, com-mercial and independent retail firms.

Shell Montreal refinery shutdown imperils Portland Pipe LineA planned shutdown of the 130,000 BPD Royal Dutch Shell refinery in Montreal will sig-

nificantly affect operations on the Portland Pipe Line system.Two 236-mile pipelines run underground between South Portland and Montreal. The pipeline

operation includes a tank farm and offloading terminal on the waterfront in SouthPortland, currently pumping 300,000 to 350,000 BPD, including shipment of rawmaterials to the Montreal refinery, one of the pipeline’s biggest customers.

The refinery is scheduled to close by the end of this year, for conversion intoan oil storage facility. Shell made the decision after finding no buyers.

Portland Pipe Line was founded in 1941.About 180 oil tankers visit Portland Harborannually. Portland is the closest year-roundice-free port for much of Canada.

The pipeline and its parent company, Montreal Pipe Line, have looked into reversing theflow through one of the two pipelines at a cost of $100 million, which would allow delivery ofwestern Canadian crude to U.S. refineries. However, the Portland Pipeline has waned in its lat-ter years and has now been suspended. There comes a time when all mature projects have tobe considered for reevaluation. Thus, the major has begun reposturing downstream positionsand lending an ear to unconventional energy.

Shell/Cosan big Brazilian ethanol JV marks Shell’s first move into biofuelsShell is planning a joint venture with Cosan S.A., the biggest foreign investment into

Brazil’s ethanol sector, to produce and sell sugarcane-based ethanol. Per the deal, reportedlyShell would appropriate $1.63 billion, for a two-year period. This JV would be Shell’s first moveinto biofuels, and the biggest so far into an ethanol distribution and production operation by aWestern energy company.

Shell would contribute its retail sites, aviation fuel business and distribution and supplyassets in Brazil, as well as its Codexis Inc. and Iogen Corp. stakes, plus $1.63 billion cash.Cosan would bring in its ethanol-production and sugarcane crushing facilities, power plants,and fuel distribution and retailing assets, as well as $2.52 billion in Cosan debt.

The venture would amount to one of the country’s biggest distributors, providing Shell accessto one of the biggest ethanol markets in the world. Reciprocally, this JV would provide Cosan withaccess to Shell’s worldwide distribution network and overseas ethanol markets therewith.

Shell’s cites weak refining margins for Q4 2009 75% drop in profitShell’s Q4 2009 profit was ~$1.2 billion, amounting to a 75% fall from Q4 2008 profit

of $4.8 billion; the company cited weak refining margins for that fall in profit.Shell plans to sell 15% of its refineries globally. As Europe’s second largest by market

value Shell is shifting the focus of its downstream business to Asia, in conformance withglobal trends on fuel demand, toward better profits. In the longer term, company plans to growits production, which is its main earnings driver, by 2% to 3%.

Excess refining capacity resulting from lower fuel demand, as a result of the global reces-sion, as well as new refinery start-up operations in Asia and the Middle East, have impactedrefining margins at all oil majors, as noted for ExxonMobil, ConocoPhillips, Chevron, as wellas for the major integrated refiners in general.

Shell has a particularly big refinery portfolio, and has sustained a comparablystronger impact due to the weakened downstream market, more so than its major globaland regional competitors.


www.plsx.com

Refining/Downstream

Kinder Morgan Energy Partners enters $195 MM ethanol JVKinder Morgan Energy Partners LP (NYSE:KMP) is buying three handling terminals

– located in Baltimore, Dallas and Linden, N.J. — from U.S. Development Group, for $195million, aiming to create a nationwide network for ethanol distribution.

The acquisition price includes upwards of $80 million in KMP equity issued to theseller. Along with Kinder Morgan’s existing ethanol terminals, these three additionalfacilities will be connected by rail, marine, truck, and pipeline.

The company will form a JV with U.S. Development Group to manage network access.U.S. Development Group CEO Dan Borgen said, “We look forward to partnering with

Kinder Morgan, a national leader in fuel transportation and storage, to revolutionize the waythat biofuels are delivered to market. With the new terminal and pipeline venture, and existingoperations, KMP expects to handle upwards of 218,000 BPD ethanol this year, and has so farinvested about $500 million in the renewable fuels handling business.

Eagle Rock reviving 80 MMCFD cryogenic plantin Granite Wash play

Eagle Rock Energy Partners willdeploy a currently idle cryogenic plant in theTexas Panhandle to accommodate growth inthe Granite Wash Play. The recentlynamed/acquired Phoenix Plantresides in Phase 2 of EagleRock’s Texas Panhandle con-solidation and processingcapacity expansion project that began inFebruary 2008. Phase one involved shuttingdown Eagle Rock’s Stinnett Plant in MooreCounty, consolidating its volumes to itsCalgary Plant in Carson County. The firstphase, which began in 2008, also involvedrefurbishing the Stinnett Plant. Unfortunately,the second phase was delayed due to last year'spoor market conditions and reduced drilling.Phase 2 also involves relocation of the refur-bished Stinnett Plant (the Phoenix Plant) to the East Panhandle’s Arrington System inHemphill County.

Currently the Arrington facility can han-dle 40 MMCFD and the new Phoenix Plantcan handle 80 MMCFD. It will initially besized with compression to handle 50MMCFD but can be expanded to 80MMCFD. Eagle Rock also plans to consoli-date gas volumes at its cryogenic CanadianPlant in Hemphill County to the PhoenixPlant improving overall gas recoveries. The25 MMCFD Canadian Plant will remainavailable allowing Eagle Rock to flow incre-mental volumes to it as needed.

These infrastructure adjustments will bedone by Q3 2010 at an incremental cost of~$18.4 million. The partnership doesn’tanticipate any downtime or reduced through-put across its East or West PanhandleSystems during the switches.

“After consolidating our West Panhandleoperations in the first phase of this projectwhich resulted in an improved cost structureand better utilization of our excess capacity inthe area we will now redeploy a state-of-the-artcryogenic facility to the heart of the fast grow-ing Granite Wash Play,” CEO Joseph A. Millssaid. “This play is currently experiencing sig-nificant drilling activity due to the active hori-zontal and the horizontal rig count has morethan doubled since mid-2009. The play pro-vides some of the highest rate of return drillingopportunities in the United States, and weanticipate further rig count increases.”

(337) 234-1125www.ilandman.com

shell also plans to sell 15% of itsrefineries globally.


BP refining margins off, no closings plannedBP’s net income in 2009 was off 22%, though it returned to profitability at $4.3 billion in

Q4 2009, compared to a loss in Q4 2008 of $3.3 billion. BP’s midstream asset divestitureremains under way in North America, as the global refining community restructures.

BP’s U.S. operations have shifted towards higher margin refineries dealing with cheapercrude. The company believes it has too much refining capacity, though says itisn’t planning to close any plants at this time.

Despite the return to profitability, BP still aims to reduce costs across itsglobal operations. But the company says there are no plans for any major restruc-turing, after the company cut more than 7,500 jobs and 1,500 contractor posi-

tions since December 2007.BP attributes its Q4 profit to increased production and higher crude prices. Per the trend

among major global oil companies, higher crude prices offset the markedly lower earningsfrom refining and marketing downstream operations.

Shell, for example, with a particularly large refining portfolio, intends to shift the focus of itsdownstream business to Asia, in conformance with global trends on fuel demand. Many suggestspiking fuel demand in the Far East will offset declining demand in the West. Furthermore, joint ven-tures, some observe, might be a good way to achieve global refining consolidation in the shiftingglobal downstream market. BP in 1999 entered a European downstream JV with Mobil in 1999 thatwas overtaken subsequently by Exxon in its merger with Mobil.

STONEHENGE is a asset-backed midstream company thatoffers considerable engineering, operating and financial resources that can be applied to the midstream needs ofnatural gas producers.

Our mission is to support customers in the production of natural gasand natural gas liquids by:• Maximizing the value received for the produced gas• Responding quickly to new facility needs • Maintaining industry-best online times• Maintaining an inventory of processing equipment to accelerate project development

We have technical and financial backing from three proven companies:• Energy Spectrum Capital, a leading private equity firm• Kahuna Ventures, a full-service midstream engineering consulting firm• Kahuna Operating, a midstream facility operator

www.StonehengeEnergy.com

Chuck Wilkinson, PresidentDirect: [email protected]

Richard Carl, Director, Business DevelopmentDirect: 720-889-9953 [email protected]

Mike Brinkmeyer, Director, New VenturesDirect: [email protected]

Benzene in Barnett drawsheadlines in Texas

Energy sector professionals are con-cerned about public perception of operationsin the Barnett Shale after the TexasCommission of Environmental Equalitybegan testing for Benzene in the air in andaround the Barnett Shale play in North Texas.

The concerns stem in part from howevents shaped public perceptions of gasdrilling in the Marcellus Shale.

The TCEQ found notable benzene levels inthe air in about a quarter of the sites monitoredin the Barnett. The TCEQ claims that gas com-panies have fixed the worst emission problems,and are now remedying lower emission sites.

The TCEQ plans to investigate residentcomplaints within 12 hours, per recentlyinstituted guidelines for hydrocarbon produc-tion, and install two new monitors at Dish andEagle Mountain in the Barnett to monitorlong-term air conditions. The agency plans toinvestigate sites for proper permit authoriza-tions and continue testing sites that showexcessive emissions. Permit rules are underreview to determine whether authorizationsare enforceable. Despite that, the TCEQ saysthere is no cause for alarm.

Plains All American files $200 MM IPO for gas storage subPlains All American Pipeline intends to pursue an IPO of common units representing

limited partner interests of Plains All American Natural Gas Storage LP – an MLP unit thatwill be formed by Plains All American to own and operate its gas storage assets and business.

Plains All American filed an S1 for the IPO on January 25. Plains All American will own the 2% general partner interest and incentive distribution rights

of PNGS, and anticipates allocating the proceeds toward debt service and other general purposes.Houston-based Plains All American operates in the transportation, storage, terminaling

and marketing of crude, refined products and LNG, as well as storage.For more information, see PLS’ CapitalMarkets report, Volume 3, No. 5.

no cause for alarm.


www.plsx.com

PeopleThe Woodlands, Texas-based Western

Gas Partners promoted Donald Sinclairto CEO of its general partner. He replacesRobert Gwin, who remains at WesternGas as chairman. The company is apartnership formed by AnadarkoPetroleum to own, operate, acquire and develop midstream assets.

Western Refining announced thatCOO and President Jeff Stevens wasappointed as President and CEO,succeeding Paul Foster who will remain thecompany’s Executive Chairman andchairman of the board.

Quest Resource Corp., Quest EnergyPartners, and Quest Midstream Partnersannounced the appointment of Stephen L.DeGiusti as General Counsel and ChiefCompliance Officer.

CEO Russ Girling of TC PipeLines GPInc. is resigning effective March 1, afterwhich Greg Lohnes will become Chairman;James Baggs will join the board; MarkZimmerman will continue as President, andact as CEO.

Senior Managing Director of GSOCapital Partners LP and head of GSO’sHouston office, D. Dwight Scott, has joined the Crosstex Energy GP LLC Boardof Directors.

Stonehenge Energy Resources namedMichael Brinkmeyer as General Manager ofKeystone Midstream Services, its newventure with Rex Energy.

Steve Moore joined Amerex EnergyServices as Executive Vice President

Scott L. Fordham joined ChampionEnergy Services as President and CEO.

The following individuals have beennamed Senior Vice Presidents ofEnterprise Products Partners’ generalpartner: Lynn L. Bourdon, J. MichaelCockrell, James M. Collingsworth, ThomasM. Zulim, Christopher R. Skoog, and RudyA. Nix. Additionally, James F. Guion wasnamed Vice President of the generalpartner.

John Brickey has joined MacquarieCook Power’s Houston office as VicePresident.

Tom Gros was named Vice President ofsales at Reliant Energy.

HitYourMark!Call (713) 650-1212

GULF COASTCAMERON PH., LA PROSPECT1-2 Potential Wells. 640-Acres.LOWER HACKBERRY TRENDAmplitued Supported. 3-D Seismic.85% OPERATED WI; 68.5% NRI LOWER Current Operator Owns 5% WI. HACKBERRYEst Well Reserves: 20 BCFEst Project Reserves: 25-40 BCFDHC: $7,300,000; Compl: $5,000,000

DV 2989

HINDS CO., MS PROSPECT3-5 Prospects. 3,000+ Acres.INTERIOR SALT BASINObj 1: Cotton Valley. 14,000-17,000 Ft.Obj 2: Smackover. 17,500-18,500 Ft.Sweet Gas & Condensate.3-D Seismic, SubSurface, Petrophysics.Smackover Target - Bypassed Pay. SMACKOVER100% OPERATED WI; 77% NRICurrent CV Production Is Liquid Rich-----And Only 3% CO2.Est Well Reserves: 5.0 - 50 BCFEst Proj Reserves: 3.0 MMBC & 150 BCF

DV 2988

JIM HOGG CO., TX PROSPECT25-Potential Wells. ~4,800-Acres.GULF COASTQueen City. 11,000 Ft.3-D & 2-D Seismic. SubSurface Geology.100% NonOperated WI; 75% NRI QUEEN Estimated Well Reserves: 4 BCFE CITYEstimated Project Reserves: 99 BCFEDHC: $1,400,000; Compl Cost: $900,000

DV 3726

LAFOURCHE PARISH, LA PROSPECT1-Exploratory Well. 2-For Development.MIDDLE MIOCENE4 Objectives: 2 Above Pressure, 2 Below.3-D & Subsurface Well Control100% OPERATED WI; 74% NRIReserves: 32 MMBO & 18 BCFG MIOCENEOption 1-DHC $2.4 MM. Compl: $4.4 MMDHC NonPressure Test Only(2 Objs)Option 2 - DHC $3.4 MM. Compl: $5.3 MMDHC Through Pressure(4 Objs)

DV 2736

NUECES CO., TX PROSPECT2-Potential Wells. 320-Acres.GULF COAST BASINObj 1: Anderson. 11,200 Ft.Obj 2: Shallow Oil. 7,000 Ft.3-D Seismic & SubSurface Geology. 3-D 100% OPERATED WI; 73% NRI PROSPECTEst Oil Rsrvs/Well: 128-224 MBOEst Gas Rsrvs/Well: 8.0-14.0 BCFDHC: $1,770,000; Compl: $454,000

DV 2976

ARK-LA-TEXVAN BUREN & CLEBURNE COS., AR6-Wells. 587-Net Acres.Fayetteville Production.Gross Production: 1,599 MCFDNet Production: 87 MCFD FAYETTEVILLEAverage Net Cash Flow: $9,887/MnCALL PLS FOR MORE INFO ON PKG

RR 4180

GULF COASTATASCOSA CO., TX PIPELINEH2S (Sour Gas) Pipeline. ±13-Miles.SOUTH PLEASANTON TO FASHINGOuter Diameter: 6.625''Inner Diameter: 6.0'' 25 MMCFDDesign Pressure: 2,282 psi PIPELINEGROUND FLOOR OPPORTUNITYCapacity: ±25,000 MCFDOnly H2S Line In Area.Emerging Eagle Ford Activity In Area.

G 2907PL

BRAZORIA CO., TX PROSPECT1-Potential Well. 340-Acres.GULF COAST FRIORATTLESNAKE MOUNDObj 1: Big Gas Sand. 11,300 Ft.Obj 2: Grubbs Sand. 11,800 Ft.3-D Seismic. SubSurface Geology. MULTIPAYOffset To Excellent Recent Well.50% NonOperated WI; 75% NRI (Lease)Estimated Reserves: 28 BCF & 837 MBODHC: $3,900,000; Compl: $1,300,000CALL GENERATOR TO LEARN MORE

DV 2823

CALCASIEU CO., LA PROSPECT2-Wells. 395-Acres.GULF COASTObj 1: Cib Haz (Frio). 8,400 Ft.3-D Seismic, SubSurface, & Geophysics.Stratigraphic Trap.70% NonOperated WI; 51.1% NRI NONOPERATEDEst Rsrvs/Well: ~1.46 MMBO & 734 MMCFEst Rsrvs/Proj: 2.0 MMBO & 1.0 BCFDHC: $1,248,500; Compl: $619,900CALL GENERATOR TO LEARN MORE

DV 2758

CAMERON PH., LA PACKAGE4-Potential Wells. 640-Acres.GULF COAST FRIOMarg Howei: 13,000-14,000 Ft.3-D Seismic. SubSurface Geology.85% OPERATED WI; 74% NRI (Lease) FRIOEstimated Well Reserves: 25 BCFEst. Project Rsrvs: 108 BCF & 2.2 MMBODHC: $4,000,000; Compl: $1,500,000CALL GENERATOR FOR MORE INFO

DV 2783

High-Grade Listing OpportunitiesTo get more attention for your listing, call (713) 650-1212


www.plsx.com

Enbridge & FCCL provide another $250 MM to Christina LakeEnbridge Inc. and FCCL Partnership have agreed to provide additional pipeline and

terminal facilities to support expansion of the Christina Lake enhanced oil project, whichCenovus Energy operates. Enbridge CEO Patrick Daniel said the expansion provides confir-mation of sustainable growth in oil sands production.

The additional facilities will cost an estimated ~$250 million andwill enter service in 2011. Enbridge’s existing Christina Lateral and

terminal facilities include two 8-inch laterallines plus 240,000 BBL tankage, connectingwith the enhanced oil project to Enbridge’sAthabasca Pipeline. Together with theWaupisoo Pipeline and associated lateral/terminal facilities, the Athabasca pipeline comprisesEnbridge’s Regional Oil Sands System, delivering crude form five producing sands projectsto the Hardisty and Edmonton mainline hubs.

The addition at Christina Lake includes two 375,000 BBL tanks and 26 km of 30-inch-diameter pipeline to accommodate project expansion.

The 335-mile Athabasca Pipeline will transport crude from the Athabasca region ofAlberta south to the Enbridge Mainline at Hardisty. It originates at the 2.7 MMBBL-capacityAthabasca Terminal next to Suncor’s upgrader north of Fort McMurray.

The 235-mile Waupisoo Pipeline came on stream June 1, originating at the CheechamTerminal 100 km south of Fort McMurray, interconnecting with the Athabasca Pipeline, trans-porting south to the terminal in Edmonton.

Future of Units 3 and 4 of S.Tx. nuclear project uncertain

A dispute between NRG Energy andCPS Energy may cancel plans to build units 3and 4 of the South Texas nuclear power project.

Japan’s TEPCO maytake a stake in the >$10 billionproject to be built by 2016. Its

interest in the project came to light as NRGand CPS prepared to face off in court over adispute about CPS’ right to reduce ownershipor withdraw from the project. Currently,TEPCO is a consultant on the project.

An expected $17 billion in additional costscreated the difficulties between NRG and CPS.The project is one of four finalists expected toshare in an $18.5 billion federal loan guaranteeprogram for the nuclear industry.

Canada

Canada

the expansion is further confirmation ofsustainable growth in oil sands production.

Pembina Pipeline has $240 MM 2010 capital plan

Pembina Pipeline Income Fund subPembina Pipeline Corp. announced 2010capital spending of $240 million with a pri-ority of expanding oil sands/heavy oil busi-ness. In response to industry demand fordiluent supply and heavy oil takeaway fromAlberta’s Slave Lake area, Pembina allo-cated ~$152 million (~60%) to construct theNipisi and Mitsue Pipeline projects. Theseprojects support Pembina’s oil sands andheavy oil business strategy.

With ~80% of the project engineeringfinished, completion is scheduled for mid-2011. Together, the two projects will cost$440 million. Procurement agreements nowgenerate 60% of the cost estimate.

Pembina will spend ~$46 million this yearto initiate projects in its conventional pipelinesbusiness, primarily to increase capacity andstreamline performance and reliability at itsWestern, Peace, and Drayton Valley systems.

ChemicalsSunoco selling chemicals unit to Braskem for $350 million

Sunoco is selling its Sunoco Chemicals sub to Braskem SA for ~$350 million.Braskem is one of the largest petrochemical and thermoplastic resin producers in the

Western Hemisphere.The transaction includes polypropylene assets and inventory, and is sub-

ject to market-based working capital adjustment at closing, which is expectedto occur by March 31.

Assets include manufacturing facilities in Marcus Hook, Pa., La Porte, Texas, and Neal,W. Va., which have a combined capacity of 2.1 billion pounds of polypropylene annually. Thedeal also includes Sunoco’s Research and Technology Center in Pittsburgh.

Sunoco will retain its phenol and derivatives business, which has manufacturing assets inPhiladelphia, Pennsylvania, and Haverhill, Ohio. It expects to record a pre-tax loss on the salein Q1 2010 in the range of $185 to $195 million.

Praxair building $50 MM ancillary line to Memphis refineryPraxair is building a new 450-ton-per-day air-separation unit and two new six-mile

pipelines for the supply of oxygen and nitrogen to the refinery. The $50 million pipeline sys-tem will supply Valero Refining Co.’s Memphis, Tenn., facility with oxygen and nitrogen.

Praxair produces, sells and distributes atmospheric, process and specialtygases, and high-performance surface coatings.

Valero’s Memphis refinery produces diesel and most of the jet fuel for theMemphis International Airport.

Praxair is intensifying its regional reach and adding new customers in its business circlesfor accelerated growth. It is the largest industrial gas company in the Americas, although lowgas prices have currently impacted its top- and bottom-line results, though auto, steel andchemical industries have announced a significant number of plant startups and Praxair, mov-ing ahead, expects its new business pipeline to remain strong.

Full year 2010 capex is expected to top $1.4 billion.

Shale resources benefit the U.S. chemicals industryThe most common basic building block of chemicals manufacturing is ethylene, and

about 70% of America’s ethylene production capacity uses gas as feedstock.High gas prices from 2005 to 2008 harmed the chemicals sector. With a surge in production

from resource plays, gas prices have dropped, much to the delight of the chemicals industry.Outside of the U.S., ethylene plants that use oil-derived feedstock account for two-thirds

of global ethylene capacity. Oil-derived feedstock, like naphtha, is more expensive comparedto gas. Analysts therefore expect an upswing in U.S. chemicals output.

Property Tax Appraisals

Property Tax Appeals

Due Diligence Reviews

Purchase Price Allocations

Independent Appraisals

Sales & Use Tax Reverse Audits

Kevin Jones • [email protected] 469-298-1594 • www.keatax.com


Pricing

RegionalSpotPricesforNaturalGas

SpotPrices Thu. Fri. Mon. Tue. Wed.($perMMBtu) 11-Feb 12-Feb 15-Feb 16-Feb 17-FebHenryHub 5.53 5.48 Holiday 5.65 5.47NewYork 7.83 6.69 Holiday 6.49 6.18Chicago 5.67 5.62 Holiday 5.81 5.60Cal.Comp.Avg.* 5.52 5.48 Holiday 5.62 5.43Futures($/MMBtu)MarchDelivery 5.396 5.468 Holiday 5.310 5.419AprilDelivery 5.383 5.447 Holiday 5.302 5.389

*Avg, of NGI’s reported average for: Malin, PG&E citygate and Southern California Border.

Source: NGI’s Daily Gas Price Index (http://www.intelligencepress.com)

EstimatedAverageWellheadPriceAug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10

Price($perMcf) 3.14 2.92 3.60 3.64 4.44 5.14

Price($perMMBtu) 3.05 2.84 3.50 3.54 4.31 5.00

Note: Prices were converted from $ per Mcf to $ per MMBtu using an average heat content of 1,029 Btu per cubic foot as published in Table A4 of the Annual Energy Review 2008.

CurrentNaturalGasStocksbyRegionEstimated Percent

Current One-Week Implied Net Prior 5-Year DifferenceStocks Prior Stocks Change from (2005-2009) From 5 Year

All Volumes in Bcf 02/12/10 02/05/10 Last Week Average Average

EastRegion 1,030 1,135 -105 1,048 -1.7WestRegion 322 344 -22 270 19.3ProducingRegion 673 736 -63 655 2.7TotalLower48 2,025 2,215 -190 1,972 2.7

Source: Energy Information Administration: Form EIA-912, “Weekly Underground Natural Gas Storage Report,” and the Historical Weekly Storage Estimates Database. Row and column sums may not equal totals due to independent rounding.

Source: Energy Information Administration, Office of Oil and Gas.

GULF COASTYAZOO CO., MS PROSPECT10-Potential Wells. 7,600-Acres.INTERIOR SALT BASINObj 1: Cotton Valley. 12,000-14,000 Ft.Obj 2: Smackover. 15,000-16,000 Ft.L. Smackover - Sweet Gas/Condensate. COTTON3-D Seismic & SubSurface Geology. VALLEY90% OPERATED WI; 77% NRI SMACKOVERAdjacent CV Field Produces: ~26 MMCFDEst Well Reserves: 5.0-20.0 BCFEst Project Reserves: 50-100 BCFCONTACT SELLER FOR DETAILS

DV 2987

SOUTH TEXASBROOKS CO., TX PROSPECT40-Potential Wells. ~13,000-Acres.GULF COASTVicksburg. 8,000 Ft.3-D Seismic & SubSurface Geology.100% NonOperated WI; 75% NRI VICKSBURGEstimated Well Reserves: 2 BCFEEstimated Project Reserves: 80 BCFEDHC: $1,000,000; Compl Cost: $450,000CONTACT SELLER FOR MORE INFO

DV 3763

LyondellBasell ups offer tounsecured creditors

LyondellBasell Industries and unse-cured creditors have reached a new agreementrelated to the creditors’ prior objections aboutthe settlement amount. The proposed Chapter11 plan payment has increased from $300 to$450 million relating to a dispute about a set-tlement between LyondellBasell’s estate andthe parties who financed Basell’s buyout ofLyondell in 2007.

The unsecured creditors sued banklenders over the buyout which was financedwith $22 billion in debt. LyondellBasell set-tled the lawsuit on behalf of the creditors andthe creditors challenged the company’s abil-ity to settle on their behalf which led to thetrial. The $150 million increase in settlementagreed upon between the company and thecreditors came on the eve of the trial date.

LyondellBasell plans to file a new dis-closure statement February 22 and a March1 hearing has been set seeking the bank-ruptcy court’s approval of the statement. Anattorney for Law Debenture Trust whichholds ~$255 million worth of notes for aLyondellBasell subsidiary reportedly toldthe bankruptcy court judge it will likelyobject to the settlement.

Citing weak sales and low liquidity onJanuary 6 the Netherlands-based LyondellBasell’s operations in the United States filed forbankruptcy protection. The company employeesabout 4,000 employees in Houston.

Gas hits $11.53 MMBtu for NYC, storage 3% above 5-year avg.Two major snow storms occurred between February 5 and 10. On Friday, February 5, nat-

ural gas at Transco Pipeline’s Zone 6, which serves New York City, jumped to $11.53 perMMBtu, rising by $4.37 compared with the day before. However, following this dramaticjump, prices decreased gradually, ending trading February 17 at $6.18 per MMBtu.

Temperatures were generally colder than normal during the week ended February 11.Based on the NWS’s degree-day data, temperatures during the week ending February 11 were,on average, about 3 degrees colder than normal and 9 degrees colder than last year’s levels.

LNG imports to the U.S. increased 29 percent or 100 Bcf in 2009 to a total of 452 Bcf,according to the U.S. DOE. The total of 452 Bcf in 2009 was the 2nd lowest total since 2002.Distrigas’ regasification facility in Everett, Massachusetts, received the greatest LNG deliver-ies of the 10 facilities operating in 2009, receiving 156 Bcf, primarily from Trinidad andTobago. El Paso’s Elba Island, Georgia, received 142 Bcf.


www.plsx.com Call PLS To Place Your Listing: (713)650-1212

MIDCONTINENTLAMPASAS CO., TX PIPELINE18-Miles Pipeline Project Needed.COPPERAS COVERight Of Ways Currently Being Obtained.SEEKING PROJECT PARTICIPANTS100% WI Possible For Pipeline. PIPELINE Active w/ New Production. PROJECTNeeds Max Capacity: 12 MMCFDPotential Cash Flow: $270,000/MnProved Reserves In Area.Operator Has Drilling Plan------Needs Pipeline Development.

G 6389PL

NORTH TEXAS PROPERTY SALE29-Wells. 3,840-Gross & 1,253-Net Acres.NEWARK EAST FIELDBARNETT SHALE PRODUCTION32.9% OPERATED WI; 24.9% NRI 1,100Net Production: 1,100 MCFD MCFDNet Cash Flow: ~$100,000/Mn12-PUDS On HBP Acreage.CONTACT SELLER FOR MORE INFO

PP 2745DV

OKLAHOMA PROPERTY SALE107-Active Wells.WOODFORD SHALECOAL & ATOKA60,634-Gross & 27,916-Net Acres.2.4% In Upstream & Midstream Assets.Net Production: 650 MCFD 650 2010 Reserve Report Is Available. MCFDCONTACT AGENT FOR MORE INFO

PP 2985

MIDCONTINENTPALO PINTO CO., TX PROSPECT23-Potential Wells. 1,894-Acres.FT. WORTH BASINObj 1: Bend Conglomerate. 3,300 Ft.Obj 2: Barnett Shale. 4,300 Ft. BARNETT 3-D Seismic & SubSurface Geology. COMBO100% OPERATED WI; 75% NRIEst Bend Cong. Well Rsrvs: 850 MMCFEst Barnett Well Rsrvs: 1.0 BCFDHC(1-Well): $884,000; Compl: $476,000

DV 2936

TEXAS PANHANDLE PROSPECT150,000-Net Acres.CANYON SHALEUnconventional Gas Play.Proposed Depth: 6,000-7,000 Ft.Interval Thickness: ~1,000 Ft.Numerous Secondary Objectives. CANYON85% OPERATED WI Available. SHALEEst Recoverable Rsrvs: 2.0-4.0 TCF3-Major Pipelines Across Acreage.4-Wells Drill/Complete: $6,000,000CALL GENERATOR FOR MORE INFO

DV 2707

TULSA CO., OK GATHERING SYSTEMShutIn Pipeline w/ Equipment. 10 Sq Miles.OKLAHOMA SYSTEMSignificant CBM Exploration w/Acreage.Shallow Coal Seam Gas Production. CBM/PIPEShutIn Pipeline: Raw Unleased AcreageSuitable To: Production & Pipeline BuyerOptimal Scenario: Buy Pipeline & Drill

G 5617PL

ONEOK and Targa strike Cedar Bayou NGL deal

ONEOK Partners signed a 10-yearfirm space fractionation agreement to useTarga Resources Partners subsidiaryCedar Bayou Fractionators’ NGL facility atMont Belvieu, Texas.

ONEOK has contracted for 60,000 barrelsper day of fractionation services atthe Cedar Bayou facility which iscurrently undergoing an expansionfrom 215,000 to 275,000 barrels per

day that is expected to be complete by Q2 2011.“This agreement provides us with incre-

mental fractionation capability in a timelyand cost-effective manner enabling us to con-tinue providing value-added services to ourNGL producers and customers from new sup-plies in the Mid-Continent, north Texas andRocky Mountain regions,” ONEOK CEOTerry K. Spencer said.

As part of the Cedar Bayou expansion,Targa and ONEOK plan to build interconnec-tion facilities to link the facility with ONEOK’srecently finished 440-mile Arbuckle Pipeline,which extends from southern Oklahomathrough the Barnett Shale of North Texas, trans-porting raw NGL to Mont Belvieu.

Besides its 80% interest in the MB-1fractionator in Mont Belvieu, ONEOK alsoowns fractionators in Medford, Okla.,Bushton and Hutchinson, Kan., and a 10%stake in one at Conway, Kan., all with a totalcapacity of about 550,000 barrels per day.ONEOK is one of the largest natural gas dis-tributors in the United States with operationsfocused primarily on gas marketing.

The expansion of the facility will expandTarga’s maximum gross fractionation capacityalong the Texas and Louisiana Gulf Coast to439,000 barrels per day. Targa has a network ofintegrated gathering pipelines and seven pro-cessing plants in Southwest Louisiana andTexas’ Permian and Fort Worth basins with ter-minals in the Houston and Lake Charles areas.

Note: The West Texas Intermediate (WTI) crude oil price, in dollars per barrel, is converted to $/MMBtu using a conversion factor of 5.80 MMbtu per barrel. The dates marked by vertical lines are the NYMEX near-month contract settlement dates.

NYMEXNaturalGasFuturesNear-MonthContractSettlementPrice, WTX Intermediate Crude Oil Spot Price & Henry Hub Natural Gas Spot Price

Source: U.S. Energy Information Administration


PLS Fax: (713)658-1922

Apache buying In 2008, the project plan was flipped from anLNG import to an LNG export facility.

EOG Resources entered an agreementlast summer as a supplier for the terminal.

Kitimat has previ-ously entered agreementswith Korea Gas (theworld’s largest single LNG importer), andSpain’s Gas Natural to take 40% and 30%of its capacity respectively.

“With the increase in supply of naturalgas in North America, gas from WesternCanada will need new export markets,” saidApache Canada President Tim Wall. “TheAsia-Pacific region is at the heart of theworld’s economic growth and has a deepappetite for energy. We are confident that theKitimat LNG project will open strong, newmarkets in the Asia Pacific and other areasaround the world for Canadian natural gas.”

Since coming to Canada in 1995,Apache has grown into one of the country’stop oil and gas producers, with production inB.C., Alberta, Saskatchewan, and theNorthwest Territories. The company hasincreased spending sixfold in B.C. since2005. It was one of the first producers innortheast B.C.’s Horn River basin, operatingabout half of their 430,000 gross averageposition in the play, which accounts for morethan 40% of the basin.

Vitol is evidently sending its cargo ofRussia’s ESPO crude, slated for loading inmid-February from the Pacific Coast port ofKozmino, to Hawaii. Vitol has reportedlylogged a vessel to load the 100,000 MTpayload, with Hawaii as the destination. Seatraffic logs also indicate Tesoro loaded100,000 MT of crude on February 1 fromSouth Korea’s Yeosu port, bound for Hawaii.

Keppel’s KSI Production subsidiaryformed a JV with the Singapore-listed ExraHoldings and PetroVietnam Transport-ation Corp., a unit of PetroVietnam, for anFPSO offloading vessel at the Chim Sao oilproject in Vietnam.

Qatar Petroleum and an ExxonMobilchemical subsidiary are planning to build apetrochemical plant at Ras Laffan slated forstartup in late 2015. The project asproposed includes a 1.6 MMTY steamcracker, two 650,000 TPY gas phasepolyethylene plants and a 700,000 TPYethylene glycol plant. The facility will useExxonMobil’s proprietary stream crackingand polyethylene process and producttechnologies and will be fueled by gas fromQatar Petroleum’s vast North field.

Russia and Belarus resolve oil supply disputeRussia and Belarus ended a dispute that began after Russia started decreasing supplies

through the Druzhba pipeline following expiration of a pricing agreement December 31.The dispute threatened to disrupt oil flows on a pipeline that carries about 10% of the

European Union’s oil needs. The Druzhba pipeline transports about 37 million tons of crudeper year through Belarus to refineries in eastern Germany and Poland.

Before the pricing agreement expired December 31, Russia taxed the crude it refinesdomestically at about one third the rate applied to international customers. Now, Russia isdemanding Belarus pay full customs duties on what oil it doesn’t domestically consume.

International

Statoil spinning off retail businessNorwegian oil major Statoil is spinning off its energy and retail business in a restructuring.

Its E&R business includes 2,300 service stations in eight countries, as well as units which providelubricants, aviation and marine fuels. It will remain the owner of the new E&R company, initially,and in time the ownership position will be reassessed per its development needs.

Statoil has almost a quarter of the Scandinavian service station sector share,from which net income in Q1 through Q3 2009 was weak.

The spin off should allow Statoil to more strongly focus on its more prof-itable upstream activities, such as its Norwegian Continental Shelf region activi-ties and various other international development programs such as its West Qurna Phase 2 oilfield in Iraq, and intention to begin production at Brazil’s Peregrino heavy oil field.

ENI may sell stakes in three pipelinesIn an effort to settle charges that it blocked rivals’ access to three gas pipelines, Italy’s

Eni SpA has offered to sell the European pipelines.A European Union antitrust commission plans to market test Eni’s proposal to sell its

shares in the TAG pipeline transporting gas from Russia to Italy, and its holdingsof the TENP and Transitgas pipelines, which transport gas from northern Europe.

If Eni’s proposal is accepted by the antitrust commission, it would be thefourth (after Germany’s E.ON and RWE, and French utility GDF Suez), to settle

with the regulator for “abusing a dominant position.”Charges involve Eni refusing to sell rivals access to its pipelines. The related charges will

be dropped if the settlement is accepted by the EU.

CNPC & Myanmar enter crude pipeline contractChina National Petroleum Corp. signed with Myanmar’s ministry of energy an agree-

ment for exclusive construction and operation rights on the proposed Myanmar-to-Chinacrude oil pipeline.

The contract grants concession of pipeline operations to CNPC-unit South EastAsia Crude Oil Pipeline Ltd., to include tax concessions and rights of customs clearance.

The agreement stipulates the Myanmar government will guarantee the com-pany’s ownership and its exclusive operating rights, as well as the pipeline’s safety.

In October, CNPC began building a port in western Myanmar as part of the Myanmar-China crude pipeline project, a 771-mile run between western Myanmar’s Maday Island, andRuili in the southwestern Chinese province of Yunnan. Initial capacity design is for 12 MMTY.

PetroChina takes Aramco’s St. Eustatius terminal leasePetroChina took control of KSA’s Saudi Aramco’s lease at NuStar Energy’s Statia termi-

nal on St. Eustatius in the Dutch Caribbean. The terminal has a 5 MMBBL oil storage capacity.The terminal is a hub for tankers shipping among the Americas and the Caribbean. It is close

to major U.S. Gulf Coast refining and transport hubs. Experts say PetroChina is leasing the facil-ity to position itself for Panama Canal expansion. The $5.25 billion project should finish in 2014.

InternationalBriefs

Continued from page 1

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CapitalBriefsMartin Midstream Partners

announced a public offering of 1.65 millioncommon shares priced at $32.35/share, or~$53.4 million.

ExxonMobil is considering relocatingits Irving, Texas corporate offices to theHouston suburb of Spring, just south ofThe Woodlands, Texas. ExxonMobil plans tobuild a 20 building, 3-million-square-footcomplex to include a wellness center, laband parking garages. ExxonMobil’sHouston office is already the largest with11,000 employees, housing the company’supstream and chemical headquarters. Inaddition to its Irving corporate offices,ExxonMobil maintains downstreamoperations in Fairfax, Va.

Range Resources Inc. is selling its tightgas sand assets in Ohio, including all ancillarymidstream infrastructure, to EV EnergyPartners and EnerVest for $330 million. Theproperties include ~418,000 net acres ofleasehold and ~1,600 miles of pipeline andgathering system infrastructure.

Arlington, Va.-based GridPoint willacquire Standard Renewable Energy. Termswere not released. The deal, which isexpected to close during this quarter, willheighten GridPoint’s delivery of renewableenergy options such as solar and wind powersystems, and broaden its customer base.

Alon USA Energy subsidiaryParamount Petroleum is apparently thelead bidder on the 70,000 BPD Big Westrefinery in Bakersfield. The facility is ownedby Flying J, which is in bankruptcy. Alon’sportfolio in California includes refineries inParamount and Long Beach.

Sunoco will mothball its 145,000 BPDEagle Point refinery due to ongoing weakmargins. Closure of the Westville, N.J. facilitymay save Sunoco $250 million per year. It wasidled in November.

GeneralBriefs

EASTERN & APPALACHIAPENNSYLVANIA DRILLING PROJECT13,965-Acres.CAMBRIA, SOMERSET, LYCOMING,& TIOGA COUNTIESMARCELLUS SHALE MARCELLUSProposed Depth: 7,000 Ft.Subsurface Geology & Geochemistry.100% OPERATED WI; 84.5% NRIEst Well Reserves: ~4.0 BCF

DV 2748

PERMIAN BASINWEST TEXAS PROSPECT>370,000-Contiguous Net Acres.DELAWARE BASINPresidio, Culberson, Reeves, Jeff DavisBARNETT SHALE >370,000 100% OPERATED WI; 80% NRI NET Potential Reserves: 3-6 TCFE ACRES14 mi. Gathering System.CALL PLS FOR MORE INFORMATION

DV 4300

ROCKIES & DAKOTASDAGGETT CO., UT PROSPECT1-Wells. 5,897-Acres.GREATER GREEN RIVER BASINObj 1: Frontier, Dakota. 7,458 Ft.Obj 2: Baxter, MowrySubSurface Geology & Geophysics. FRONTIER30% NonOperated WI; 80% NRI (Lease) DAKOTAEst Reserves/Well: 10 - 14 BCFEst Reserves/Project: 144 BCFDHC:$1,755,700; Compl: $671,537CALL GENERATOR FOR MORE INFO

DV 2729

GUADALUPE CO., NM PROSPECT16,000-Net Acres.TUCUMCARI BASINObj 1: Strawn Formation. 6,000-7,000 Ft.Obj 2: Canyon Formation. 5,200 Ft.2-D Seismic, Subsurface & Geophysics.Thick Siliciclastic Pay Interval Potential.100% OPERATED WI; 80% NRI TUCUMCARIEst Well Reserves: 1.8 BCFEst Project Reserves: 979 BCFDHC: $2,400,000; Compl: $1,500,000CONTACT SELLER FOR MORE INFO

DV 2738

GULF OF MEXICOGULF OF MEXICO PROSPECT1-Prospect. 5,760-Acres. Shallow Water.HIGH ISLANDTargeting Siph D. 9,550-10,110 Ft.Water Depth: 46 Ft. GOM Analogs Cumm'd 25 MBO & 4.0 BCF. SHELFEstimated Reserves: 13.3 BCFEDHC: $5,100,000CONTACT GENERATOR FOR INFO

DV 6343

GULF OF MEXICOGULF OF MEXICO SHELF PROSPECT1-Prospect Offering. Offshore.COVE FIELD-BRAZOSObj 1:PL -1 Sand - Siph. Davisi In Age.Seller Will Deliver 75% NRI.Analogous Field Cumm'd 200 BCF. GOMSeismic Anomaly With AVO. SHELFEst Reserves: 130 MBC & 73 BCFSELLER HAS MORE INFORMATION

DV 6411

OFFSHORE LOUISIANA PROSPECT5,000-Acres.EAST CAMERONMarg A Sands (5-7,10-11).Proposed Depth: 16,800 Ft.100% OPERATED WI; 83.3% NRI GOMAnalogs Produce 14-68 BCFE. SHELFEst Reserves: 699 MBO & 90.8 BCFCALL LANDMAN FOR UPDATED AFECALL PLS FOR PROJECT DESCRIPTION

DV 5710

OFFSHORE LOUISIANA PROSPECTLOWER MIOCENE OPERC TRENDTex W, Cris I, & Cib Op Zones.Depth: 19,000-17,000 Ft. OFFSHORE 50% OPERATED WI Available. LAProlific Operc Trend Produced 746 BCFE.Total Est Reserves: 200 BCFECALL OPERATOR FOR DETAILS

DV 5960

OFFSHORE TEXAS PROSPECTMultiple Well Potential. 6,240-Acres.MATAGORDA STATE WATERS.Water Depth: 35 Ft.Targeting Cris I/Rob 43. ~4,000 Ft.Reprocessed 3-D Seismic.60% OPERATED WI; 75% NRI (Lease)Analogous Field Cumm'd: 55 BCF TX STATEPotential Reserves: 108 BCFE WATERSDry Hole Cost: $2,400,000CALL GENERATOR FOR MORE INFO

DV 2267

TEXAS STATE WATERS PACKAGE4-Wells.HIGH ISLANDDisc B, B4, B6 Production.65% OPERATED WI; 52.4% NRIGross Production Prior SI: 50 BOPDNet Production Prior SI: 26 BOPD SHUT-INProved Rsrv Est: 35.8 MBO & 1.2 BCF<$300,000 REPAIR COST TO RUN UPSTILL AVAILABLE BUT ON HOLDPKG WILL BE REMARKETED THIS MAY

PP 4262SI

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February 18 , 2010 •Volume 03, No. 03 MIDSTREAM NEWS · 2011-03-15 · Valero Energy Corp. lost...

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