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Express Pipeline System Nov 11 Product Image

Express Pipeline System Nov 11

  • ID: 2039067
  • November 2011
  • Standard & Poors

Firm transportation agreements provide for some cash flow visibility; and Supply stems from the growing Canadian oil sands region. The weighted average life of shipper contracts is only two years; and Significant capacity coming on-line from newly constructed pipelines weakens the project's competitive position. The negative rating outlook on Express Pipeline System's longer-term notes reflects greater potential for cash flow volatility once 112,000 barrels per day (bpd), or 48% of the pipeline's ship-or-pay contracts, come due in March 2012. Standard & Poor's Ratings Services' believes management will eventually execute new long-term contracts with shippers, but some volumes will be exposed to market rates until that time. While this recontracting need creates risk, Express' direct connectivity to a number of PADD...

Companies mentioned in this report are: Express Pipeline Partnership,Platte Pipe Line Co.,Express Pipeline LLC (USA),Express Pipeline L.P. (Canada)
Action: Review

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: Full Analysis

Express Pipeline Partnership,Platte Pipe Line Co.,Express Pipeline LLC (USA),Express Pipeline L.P. (Canada)

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