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Copano Energy L.L.C. Reports Operating Results (10-K)

February 29, 2012 | About:

Copano Energy L.L.C. (CPNO) filed Annual Report for the period ended 2011-12-31.

Copano Egy Llc has a market cap of $2.5 billion; its shares were traded at around $37.18 with and P/S ratio of 2.5. The dividend yield of Copano Egy Llc stocks is 6.1%.

Highlight of Business Operations:

Double Eagle Pipeline. Effective December 15, 2011, we entered into agreements to form Double Eagle Pipeline LLC (Double Eagle Pipeline), a 50/50 joint venture with Magellan Midstream Partners, L.P. (Magellan) to provide condensate gathering and transportation services to Eagle Ford Shale producers. The joint venture intends to construct a pipeline system extending from Gardendale, Texas, in LaSalle County to Three Rivers, Texas, in Live Oak County, then extending north into DeWitt County, Texas. We are converting to condensate service our existing natural gas pipeline that extends from near Three Rivers, Texas to Nueces Bay, Texas, near Corpus Christi and will lease that capacity to the joint venture. Magellan will make available to the joint venture existing and expanded storage assets, and will provide the joint ventures customers access to marine vessel loading facilities at the Port of Corpus Christi. The pipeline from Three Rivers to Corpus Christi is expected to begin service as early as the fourth quarter of 2012, while the remaining joint venture assets are expected to begin service in the second quarter of 2013. Our 50% share of estimated construction costs associated with the joint venture and our costs to convert our existing pipeline are expected to total approximately $110 million. The joint venture project is supported by long-term fee-based customer commitments from two major producers with significant acreage in the rich gas window of the Eagle Ford Shale.

2012 expansion capital. Our estimated 2012 expansion capital expenditures for board-approved projects total approximately $410 million, which includes expenditures for the southwest extension of our DK pipeline, our joint venture with Magellan, our Houston Central processing expansion, additional gathering infrastructure in the Eagle Ford Shale and expansion of our Osage System footprint in Oklahoma to accommodate drilling activity in the Mississippi Lime area.

Public debt offering. On February 7, 2012, we completed a registered underwritten offering of an additional $150,000,000 aggregate principal amount of 7.125% senior notes due 2021 (the new notes) at 102.25% of their principal amount for net proceeds of approximately $150.1 million,

Public equity offering. On January 19, 2012, we completed a registered underwritten offering of 5,750,000 common units at $34.03 per unit, for net proceeds of approximately $187.5 million, after deducting underwriting discounts and offering expenses. We used the net proceeds to repay a portion of the outstanding indebtedness under our revolving credit facility.

Declaration of distribution. On January 11, 2012, our Board of Directors declared a cash distribution for the three months ended December 31, 2011 of $0.575 per common unit. The distribution, totaling $42.1 million, was paid on February 9, 2012 to all common unitholders of record at the close of business on January 26, 2012.

Read the The complete Report

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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