Feds order Energy Transfer to inspect, repair pipelines after Sterling Heights crude oil leak

The Pipeline and Hazardous Materials Safety Administration ordered Energy Transfer to inspect and repair its pipelines due to a system-wide risk of leaks, similar to past incidents in Michigan and Pennsylvania. The agency cited failures in repair sleeves and inadequate record-keeping. Energy Transfer's Twin Oaks pipeline, operated by Sunoco LP, is currently running at reduced pressure. Investigations into the leaks are ongoing, and a U.S. representative has called for pipeline safety reforms.

Energy Transfer and its affiliates (Sunoco, SunocoCorp, USA Compression Partners) listed on the Texas Stock Exchange, totaling nearly $100 billion in market value. Energy Transfer alone accounts for $73.5 billion. The exchange raised $430 million in funding, with support from major investors. This is the first primary corporate listing for the Texas Stock Exchange, which began trading in July.

Zacks.com highlights five energy companies involved in recent M&A activity. Crescent Energy (CRGY) to acquire Devon Energy's Eagle Ford assets for $3.85B, Energy Transfer (ET) to buy Vaquero for $2.63B, Cenovus Energy (CVE) to acquire Athabasca for C$5.7B, and Drilling Tools (DTI) to acquire Saltire and Foxley. Deals aim to expand operations, reduce costs, and improve profitability.

Service Properties Trust (SSVC) received a $2.0B acquisition offer from TKO LLC. Viatris (VTRS) agreed to buy Pacira BioSciences (PCRX) for $1.65B. Option Care Health (OPCH) surged 34% after a $5.8B acquisition deal with CD&R and McKesson (MCK). Energy Transfer (ET) will acquire Vaquero Midstream for $2.625B. Emera (EMA) and Canadian Utilities (CDUAF) agreed to a $10B merger. Cenovus Energy (CVE) will acquire Athabasca Oil (ATHOF) for ~$5.7B.

A 600-gallon crude oil spill in Michigan has led to a federal investigation into Energy Transfer's 20,000 miles of pipelines. The Pipeline and Hazardous Materials Safety Administration (PHMSA) ordered Energy Transfer to submit a nationwide repair plan within 90 days, citing system-wide risks. The spill occurred at a 2010 repair site, similar to a 2022 incident in Pennsylvania. Energy Transfer acquired the pipelines in 2012 via a $5.3 billion acquisition of Sunoco.

The EIA raised its Brent crude price forecast for 2026 and 2027. Four oil companies announced deals: Cenovus (CVE) to buy Athabasca for C$5.7B, Energy Transfer (ET) to acquire Vaquero for $2.6B, Chevron (CVX) to restructure Bakken pipelines, and Crescent (CRGY) to buy Devon's Eagle Ford assets for $3.85B. Shell (SHEL) reported a Q3 refining margin of $42/barrel.