FERC allows interest on oil pipeline index remedial assessments

Kinder Morgan's stock reached $34.20 on October 16, surpassing its 52-week high. The company, valued at $76 billion, focuses on infrastructure for natural gas and petroleum products, benefiting from long-term contracts. The breakout may attract momentum investors, with the May high now serving as support.

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.