Energy

Gas Pipeline Joint Venture Killed (OGE, ETP)

Last September OGE Energy Corp. (NYSE:OGE) and Energy Transfer Partners, L.P. (NYSE:ETP) announced a joint venture to transport natural gas from Texas and Oklahoma to California and the northeastern US. It was an ambitious project and would have been a significant player in the gas transportation space.

Alas, the companies have announced that the deal is dead. OGE’s chairman, CEO, and president said that “conditions in the financial markets are such that any partnership completed in the near term would not likely be economically beneficial to OGE.” ETP’s chairman and CEO echoed that sentiment, “We regret that the capital markets have prevented us from accomplishing our plans to combine these businesses in a strategic joint venture.”

If two major energy companies can’t line up the financing they need to form a regulated return business, this is not good news for any company.

Paul Ausick

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Get started right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.