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Discover How Top NGL Producers Keep Growing05/01/2020
Each year a substantial growth in volume can be observed in both gas processing and NGL production.
Energy Transfer Partners was the top NGL producer, with a 14% growth compared to previous year. Their NGL production reached 540,000 barrels per day. For 2019, Energy Transfer has reported NGL production of 571,000 bbl/d. That is a 6% increase in production compared to 2018.
Energy Transfer did not supply processing figures, but the company has reported an increase in gathered natural gas (Permian, Northeast, and North Texas) and this is likely to push them onto one of the top positions of the natural gas processor rankings. However, due to the lack of specific figures they were placed on the 10th spot in Midstream Business’ annual rankings.
The rise in processed volumes in the Marcellus Shale has kept MPLX (previously MarkWest Energy Partners) in the first spot as top gas processor. The company reported a 15% increase in earnings for the 2018 fiscal year. No wonder Gary Heminger,MPLX’s chair and CEO said “2018 was a transformational year for MPLX”.
The most significant increase in gas processing with a 16% growth compared to the previous year was recorded by ONEOK Partners. This growth is mainly attributed to high production in the Rockies and the Midcontinent.
DCP Midstream Partners has ranked number 5 in the top NGL producers with a 10% increase from the previous year. A 1% increase in processed gas has kept the company ranking 3rd in the gas processor rankings.
Ranking second in top gas processors and third in NGL producers, Enterprise Product Partners has kept a constant growth in volume in the past several years.
Targa Resources is one of the companies that has been steadily increasing NGL production in the past several years. Targa reported a 25% growth of NGL produced in 2018 compared to 2017 and a 21% increase in 2019 compared to previous year.
Here are the TOP NGL Producers
Here are the TOP Gas Processors
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See how U.S. NG pipeline network length compares to that of other countries.
The growth of the U.S. oil and gas industry in 2022 will come from smaller companies and private businesses
Forecast: Bank of America expects to see a major bump in US crude oil production in 2022. Such growth from a non OPEC member will impact world oil market balances in times of tight supplies. Still, crude prices should hold well above $70/bbl next year and could, potentially, jump as high as $100/bbl. By 2022, oil output is expected to grow by 800,000 bbl/d, and more than half of that growth will come from #privately-held producers. For a more in-depth analysis of the forecast check out our blog.
On June 16 Targa Resources Corp. decided to acquire Lucid Energy Group, located in the Permian Basin, which is a part of Riverstone Holdings LLC and Goldman Sachs Asset Management. Firstly, Targa enlarged due to the recent “blot-on” acquisition of Southcross Energy in the Eagle Ford for $200 million and it will become bigger thanks to the $3.55 billion cash transaction. Targa’s financial position allowed it to utilize convenient opportunities to extend its company so it bought #Lucid using available cash and debt with an estimated pro forma year-end 2022 leverage around 3.5 times. According to Targa’s estimates, the acquisition of Lucid will increase the number of natural gas pipelines by 1,050 miles and add about 1.4 Bcf/d of cryogenic natural gas processing capacity in service or under construction located mainly in Eddy and Lea counties of New Mexico. The investment-grade producers source approximately 70% of current system volumes. According to the press release, a full-year standalone adjusted EBITDA is expected to be between $2.675 billion and $2.775 billion and reported year-end leverage ratio of about 2.7 times. Targa’s updated financial expectations assume NGL composite prices average $1.05 per gallon, crude oil prices average $100/bbl, and Waha natural gas prices average $6 per MMBtu for the remainder of 2022.
Your team’s ESG performance can be greatly improved applying the asset co-location analysis within upstream or midstream use cases. This has been a topic for a discussion at Rextag’s ‘Is ESG Improvement Next Door?’ webinar. We reviewed some cases like curbing gas flaring or renewable energy sourcing to power the fossil fuel infrastructure. Many combinations are available with access to the data Rextag provides on wells, acreages, power lines, substations, and such renewable infrastructure as wind turbines, methane landfills, etc.
BPPlc agreed on June 13 to exit the Canadian oil sands in an asset swap with Cenovus Energy Inc. potentially worth up to CA$1.2 billion. 50% non-operated interest in the #SunriseOilSands project will be sold by BP in an agreement reached with Cenovus Energy, a company based in Alberta. Two companies agreed on the following conditions: total consideration for the transaction includes CA$600 million in cash, additionally, a contingent payment with a maximum aggregate value of CA$600 million expiring after two years, and concerning Cenovus, it will have a 35% position in the undeveloped Bay du Nord project offshore Newfoundland and Labrador. Current production from the Sunrise Oil Sands asset is about 50,000 bbl/d and the company anticipates achieving a nameplate capacity of 60,000 bbls/d through a multi-year development program.