Research And Markets Research And Markets

How The U.S. Midstream Energy Sector Uses Derivatives To Reduce Commodity Price Volatility Oct 11

  • ID: 2025204
  • October 2011
  • Region: United States
  • Standard & Poors
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  • Anadarko Petroleum Corp.
  • CrossCountry Energy LLC
  • Enbridge Energy L.P.
  • LB Pacific L.P.
  • OMI Corp.
  • Southern Union Co.
  • MORE

The ability of a midstream energy company to manage its commodity risk effectively is a key factor when Standard & Poor's Ratings Services assigns a company's corporate credit rating. Our assessment of a company's financial policies, including the use of derivatives, is part of our review of a midstream company's business and financial risk profiles. In the midstream energy sector, companies use derivatives primarily to manage risks related to oil, natural gas, and natural gas liquids (NGLs) prices. Companies may employ varieties of financial instruments and hedging practices that could influence our view of their business and financial risk profiles and, ultimately, their credit rating. (Watch the related CreditMatters TV segment titled, "How U.S. Midstream Energy Companies Manage Commodity Price...

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

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- El Paso CGP Co
- Colorado Interstate Gas Co. LLC
- El Paso Natural Gas Co.
- SeaRiver Maritime Financial Holdings Inc.
- Florida Gas Transmission Co. LLC
- Kinder Morgan Inc.
- ANR Pipeline Co.
- Northern Natural Gas Co.
- Northwest Pipeline LLC
- ONEOK Inc.
- Gas Transmission Northwest Corp
- Southern Union Co.
- Texas Eastern Transmission L.P.
- Texas Gas Transmission LLC
- Transcontinental Gas Pipe Line Co. LLC
- The Williams Cos. Inc.
- BP Pipelines (Alaska) Inc.
- Colonial Pipeline Co.
- Dixie Pipeline Co.
- Explorer Pipeline Co.
- Questar Pipeline Co.
- Southern LNG Co.
- Phillips Alaska Pipeline Corp.
- Anadarko Petroleum Corp.
- Tennessee Gas Pipeline Co.
- Enable Oklahoma Intrastate Transmission, LLC
- Western Gas Resources Inc.
- Chevron Transport Corp.
- Transwestern Pipeline Co LLC
- Overseas Shipholding Group Inc.
- OMI Corp.
- Kern River Gas Transmission Co.
- Ferrellgas Partners L.P.
- El Paso Holdco LLC
- Spectra Energy Capital LLC
- TE Products Pipeline Co. LLC
- Buckeye Partners L.P.
- Enbridge Energy Partners L.P.
- Noark Pipeline Finance, L.L.C.
- Enbridge Energy L.P.
- Kinder Morgan Energy Partners L.P.
- GulfTerra Energy Partners L.P.
- Maritimes & Northeast Pipeline LLC
- Northern Border Pipeline Co.
- Plains All American Pipeline L.P.
- Enterprise Products Partners L.P.
- DCP Midstream LLC
- Iroquois Gas Transmission System L.P.
- ONEOK Partners L.P.
- Entergy-Koch L.P.
- TEPPCO Partners L.P.
- NuStar Pipeline Operating Partnership L.P.
- TransMontaigne Inc.
- Sunoco Logistics Partners LP
- Sunoco Logistics Partners Operations LP
- Pacific Energy Partners L.P.
- U.S. Shipping Partners L.P.
- General Maritime Corp.
- Boardwalk Pipeline Partners L.P.
- Magellan Midstream Partners L.P.
- Southern Star Central Gas Pipeline Inc.
- Southern Star Central Corp.
- MarkWest Energy Partners L.P.
- CrossCountry Energy LLC
- Inergy L.P.
- Regency Gas Services L.P.
- Gulf South Pipeline Co. L.P.
- LB Pacific L.P.
- Holly Energy Partners L.P.
- Cheniere Energy Inc.
- Targa Resources Inc.
- K-Sea Transportation Partners L.P.
- Gulfstream Natural Gas System LLC
- Targa Pipeline Partners LP
- Copano Energy LLC
- Williams Partners L.P.
- Rockies Express Pipeline LLC
- Regency Energy Partners L.P.
- Spectra Energy Corp.
- IFM (U.S.) Colonial Pipeline 2 LLC
- Energy Transfer Partners L.P.
- Enterprise GP Holdings L.P.
- MidCon LLC
- Crosstex Energy L.P.
- Targa Resources Partners LP
- Southeast Supply Header LLC
- Midcontinent Express Pipeline LLC
- DCP Midstream Partners L.P.
- Energy Transfer Equity L.P.
- Martin Midstream Partners L.P.
- El Paso Pipeline Partners L.P.
- PVR Partners L.P.
- Navios Acquisition Finance (US) Inc.
- Eagle Rock Energy Partners L.P.

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