October Surprise?

October Surprise?

Brace yourself. The U.S. Gulf Coast is about to become awash in welcomed and maybe not-so-welcomed activities that share an interesting parallel. Reese Energy Consulting today is studying the latest news out of the Gulf of Mexico, which now finds itself in full get-crackin’ mode for peak Hurricane season. The latest tropical storm is expected to make landfall next Wednesday somewhere near the Texas-La., border. Two others are gathering steam right behind it before the season officially ends in mid-October. The federal oil and gas leasing program has been officially declared undead with the year’s first auction slated for…October. The auction cancelled in March offered offshore lease sales with a portion of the revenues earmarked for La., which it uses for, among other things, hurricane protection. The irony here isn’t lost on us. Meanwhile, the Houston Ship Channel just announced it will award the first contract for a $1.1 billion expansion to dredge and widen the nation’s busiest port to accommodate more vessel traffic in…October. Batten down the hatches.

What do you think? Learn more about REC and our range of natural gas and LNG services and expertise at www.ReeseEnergyConsulting.com.

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Later, Gator

Later, Gator

Reese Energy Consulting today is showing some love to our midstream compadres that also enjoyed a stellar Q2. Houston-based Crestwood Equity Partners is no exception but comes with a couple of interesting twists to stay tuned for. Crestwood, which operates gathering, processing, storage and pipeline systems in the Permian, Bakken, and Powder River basins, has announced second quarter revenues of $929.6 million, compared with $352.7 million in the same period last year. A staggering comeback, no doubt. But recent changes still in play could well reveal bigtime opportunities for this company on a fast track to grow, minus the ties that bind. Let’s review. Crestwood in March split the sheets with private equity backer First Reserve, which also served as general partner. In the divorce settlement, the company will shell out $400 million to buy out First Reserve’s 24% stake. In June, Crestwood and Marcellus partner Con Edison closed on the $1.23 billion sale of Stagecoach Gas Services to Kinder Morgan. Now, feeling a might freer with a little more pad in the pocket, Crestwood is biding its time to make just the right strike.

What do you think? Learn more about REC and our midstream services at www.ReeseEnergyConsulting.com.

Crestwood Equity Partners

Crestwood Equity Partners LP (NYSE: CEQP) is a publicly traded master limited partnership that owns and operates midstream assets located primarily in the Bakken Shale, Delaware Basin, Powder River Basin, Marcellus Shale and Barnett Shale. 

www.crestwoodlp.com

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Howdy, Pardner

Howdy, Pardner

Tulsa pipeline giant Williams earlier this year made it crystal clear that the company was in search of “the right partner” to operate its newly acquired upstream assets in Wyo.’s Green River Basin. The strategy was equally transparent: Quickly develop those high-valued properties in the gas-rich Wamsutter Field and transition them into fee-based “customers” for Williams’ Western midstream infrastructure. Looks like they found that partner. Reese Energy Consulting today is following the latest news from Williams, which has formed a new joint venture with Denver-based Crowheart Energy. Pure player Crowheart owns 165,000 acres of leasehold across the Wamsutter where it operates more than 650 wells. Williams’ upstream assets there include two properties the company purchased from BP and Southland Royalty. The joint venture will consolidate all three operating assets into one contiguous footprint that spans 1.2+ million acres, 3,500+ operating wells, and 3,000+ potential development locations. Williams operates 3,700 miles of natural gas and NGLs pipelines in Wyo., as well as two gas processing plants.

What do you think? Learn more about REC’s natural gas services at www.ReeseEnergyConsulting.com.

The Williams Companies

The Williams Companies, Inc., is an American energy company based in Tulsa, Oklahoma. Its core business is natural gas processing and transportation, with additional petroleum and electricity generation assets. A Fortune 500 company, its common stock is a component of the S&P 500.

www.williams.com