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Spectra Energy Partner to Buy Stake in PennEast Pipeline
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Spectra Energy Partners L.P. , an Enbridge Inc. (ENB - Free Report) company has inked a purchase and sale agreement to purchase 10% equity stake from PSEG Power LLC in PennEast Pipeline Company LLC’s PennEast interstate natural gas pipeline project. PSEG Power is a subsidiary of Public Service Enterprise Group Inc. (“PSEG”) (PEG - Free Report) . The financial terms of the transaction have not been disclosed.
On the closure of this transaction, Spectra Energy Partners’ equity investment in the 120-mile, $1.2 billion PennEast pipeline project will increase to 20% from 10% currently. This acquisition is anticipated to close in the second quarter of 2017.
The pipeline is awaiting approval of the Federal Energy Regulatory Commission. Notably, this project is opposed by the environmental groups.
PSEG Power remains committed to its 125,000 dekatherms per day contracted capacity on PennEast and is one of the project’s largest customers. It intends to draw 125 thousand dekatherms per day of natural gas and will continue to remain a customer of the pipeline.
Since its inception, the PennEast Pipeline has been viewed as a vital project for the mid-Atlantic, linking ample domestic supplies to growing local markets in need of additional clean natural gas. PennEast offers an opportunity to build upon its very strong footprint in the region.
After the completion of the transaction, UGI Energy will continue to operate PennEast, holding a stake of 20%. Other partners will be NJR Pipeline, SJI Midstream, Southern Co. and Spectra Energy Partners, each holding 20% stake in the project.
Shares of Spectra Energy Partner’s have underperformed the Zacks categorized Oil & Gas – Production Pipeline MLP industry for the last three months. The company’s share price has declined 4.1% while the broader market gained 5.1%, over the same time span.
Spectra Energy Partners was recently formed by Spectra Energy Corp SE, headquartered in Houston, TX, to own and operate natural gas transportation and storage assets. The company is one of the largest operators of natural gas pipelines and storage facilities in North America.
Pioneer Natural Resources posted a positive earnings surprise of 63.33% in the preceding quarter. It had an average positive earnings surprise of 21.86% in the four trailing quarters.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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Spectra Energy Partner to Buy Stake in PennEast Pipeline
Spectra Energy Partners L.P. , an Enbridge Inc. (ENB - Free Report) company has inked a purchase and sale agreement to purchase 10% equity stake from PSEG Power LLC in PennEast Pipeline Company LLC’s PennEast interstate natural gas pipeline project. PSEG Power is a subsidiary of Public Service Enterprise Group Inc. (“PSEG”) (PEG - Free Report) . The financial terms of the transaction have not been disclosed.
On the closure of this transaction, Spectra Energy Partners’ equity investment in the 120-mile, $1.2 billion PennEast pipeline project will increase to 20% from 10% currently. This acquisition is anticipated to close in the second quarter of 2017.
The pipeline is awaiting approval of the Federal Energy Regulatory Commission. Notably, this project is opposed by the environmental groups.
PSEG Power remains committed to its 125,000 dekatherms per day contracted capacity on PennEast and is one of the project’s largest customers. It intends to draw 125 thousand dekatherms per day of natural gas and will continue to remain a customer of the pipeline.
Since its inception, the PennEast Pipeline has been viewed as a vital project for the mid-Atlantic, linking ample domestic supplies to growing local markets in need of additional clean natural gas. PennEast offers an opportunity to build upon its very strong footprint in the region.
After the completion of the transaction, UGI Energy will continue to operate PennEast, holding a stake of 20%. Other partners will be NJR Pipeline, SJI Midstream, Southern Co. and Spectra Energy Partners, each holding 20% stake in the project.
Shares of Spectra Energy Partner’s have underperformed the Zacks categorized Oil & Gas – Production Pipeline MLP industry for the last three months. The company’s share price has declined 4.1% while the broader market gained 5.1%, over the same time span.
Spectra Energy Partners was recently formed by Spectra Energy Corp SE, headquartered in Houston, TX, to own and operate natural gas transportation and storage assets. The company is one of the largest operators of natural gas pipelines and storage facilities in North America.
Spectra Energy Partners carries a Zacks Rank #3 (Hold). A better-ranked player in the same space is Pioneer Natural Resources Company (PXD - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Pioneer Natural Resources posted a positive earnings surprise of 63.33% in the preceding quarter. It had an average positive earnings surprise of 21.86% in the four trailing quarters.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>