Monday, August 3, 2015

Intermittent Energy Company Diversifies Into Natural Gas -- August 3, 2015

It's funny / ironic / coincidental how some things happen to play out on the blog. At the same time I was putting together the post with regard to natural gas pipelines from Texas to Mexico, unbeknownst to me, a reader was sending me a link to an article on another Texas natural gas pipeline story.

Bloomgberg is reporting that NextEra Partners, LP, will "buy seven Texas gas pipelines for $2.1 billion." When the deal was announced, shares in the partnership fell the most they had fallen in over a year.
“They’ll be selling a lot of equity to finance this acquisition,” Kit Konolige, senior utility analyst at Bloomberg Intelligence, who doesn’t own or rate NextEra or its partnership, said Monday in an e-mail. “Current NextEra partnership shareholders may be concerned about their stake being diluted.”
NextEra Energy Partners fell 10 percent to $31.94 at 10:26 a.m. in New York, the most since June, 2014. NextEra rose 3.2 percent to $108.57.
But this is what caught my eye, and I'm sure caught the eye(s) of everyone who read the story:
The purchase marks the first foray into pipelines for NextEra Energy Partners, which was formed in 2014. Before Monday’s transaction, the partnership had focused on buying renewable-energy power assets from its creator.
Back to the lede:
NextEra Energy Partners LP, the wind and solar power generator controlled by NextEra Energy Inc., agreed to buy seven natural gas pipelines in Texas for $2.1 billion, adding sales of the power plant fuel to Mexico.

By buying closely held NET Midstream, NextEra Energy Partners will gain the ability to ship 3 billion cubic feet of Texas shale gas a day, with the potential to expand that by 1 billion cubic feet. NET’s assets include a pipeline in the Eagle Ford formation, the top U.S. gas field by proved reserves.
So, this company, formed in 2014 -- that was, like, last year? The company lasts one year before it  diversifies into fossil fuel. I guess they need natural gas to support their hobby industry if government tax credits don't come through.

Speaks volumes.

No comments:

Post a Comment