MIDSTREAM NEWS - plsx.com

1 AllStandard Disclaimers & Seller Rights CO., TX PROPERTY1-Completed Well. Pipeline Says 10% ORRI INVESTOR FOR PIPELINEWell Tested: 500 - 1,000 MCFDORRI FOR MOTIVATED SELLERPIPELINECONTACT SELLER FOR MORE INFORR 2596PL Oxy buys Phibro for ~$250 MM, ups presence in commoditiesAlso beefs up processing infrastructure at Elk HillsOccidental Petroleum purchase Phibro LLCfrom Citigroup approx-imate net asset value. Phibro is primarily a trader in oil and gas, with assets of cash, marketablesecurities and readily saleable commodity positions; Oxy s net investment in Phibro will beabout $250 million.

2 The purchase increases Oxy s presence in global commodities trading, there-fore, arguably, exposes the company to more risk. However, Phibro doesn t useexotic derivatives and Oxy s netinvestment of $250 million is but of Oxy smarket capitalization. So, the ultimate risk isgenerally thought to be will become part of Oxy s mid-stream segment which includes its existing trading business, LNG, pipeline, and power transaction is expected to close by year end, after which Oxy will support Phibro s , Oxy s processing plant at the Elk Hills field is being expanded to compensate forflows from a new discovery in Kern County, ListingsMidstream outlookpresented at NESA forumCrestwood MIDSTREAM Partners LLCpresented to the 2009 NESA Energy Forumon October 8 an update on MIDSTREAM merg-ers, acquisi-tions.

3 And theHaynesvillearea project M&A current outlook of the presen-tation noted higher capital costs, but accessstill remaining for investment grade MLPs though they are not as dominant, due to cap-ital costs, and with questions remaining aboutvolumes and margins. The report shows buy-ers awaiting impact of lower rig counts onthroughput volumes, and notes divergentviews from Bentek and Tudor Pickering &Holt on forward gas are purportedly more inter-ested in infrastructure shale plays, and fee-based regulated transport and less inter-ested in gathering and processing, refiningand fluids infrastructure, and current oversupply of natural gas hasled to reduced drilling activity and is the pre-dominant issue in the sector.

4 With a 49%decline in rig count that could potentiallydrop supply by 5 BCFD from 2008-2010, aswell as potentially significant volumedeclines from conventional report also cites the changing basisdifferentials impacting historical price rela-tionships, due to REX and growing Mar -cellus supply, and Barnett/Carthage/ Haynes -ville volumes moving east likely drivingdown Gulf Coast basis differentials. The presentation forecasts that lower gasprices and higher oil prices will supportimproved processing margins in near term,Holly to buy Sinclair s Tulsa refinery for $ millionWill sell some assets from existing Tulsa refinery to Plains for $40 MMHolly entered an agreement with a Sinclair Oil to buySinclair s refinery in Tulsa, Okla.

5 The $128 million price comprises $ million cash and$74 million in Holly common stock. The refinery has a 75,000 BPD processing capability million bbl will also buy the refinery s ~500,000 bbl inventory, and the companyplans to integrate the purchase with its existing 85,000 BPD Tulsa refinery. Thecompany will enter a long-term agreement toprovide up to 50,000 BPD gasoline and dieselto Sinclair, supplying its branded andunbranded marketing network throughout part of the same agreement as the refinery purchase, Holly Energy Partners LP, agreed tobuy ~ million bbl of additional storage at Sinclair s Tulsa facility, as well as light products,asphalt and propane loading racks and a delivery pipeline.

6 Holly subsidiaries will enter long-termcontracts to supply storage, loading and delivery acquires SemGroup s general partner & MM sharesSemGroup Energy Partners reaches key bankruptcy settlementThe Netherlands-based Vitol purchasing a 100% interest in SemGroup EnergyPartners GP LLC, and million subordinated units in SemGroup Energy Partners terms haven t been disclosed, and consummation remains subject to customary con-ditions and October 26, SemGroup received court approval for a $122 million settle-ment, reportedly critical to ending the contentious 15-month bankruptcy.

7 SemGroupcollapsed in 2008 after the CEO lost billions onunauthorized sales of crude oil since that October 8 news of the Vitolacquisition, an ex-SemGroup LP executive wascharged by the Securities and Exchange Commission on October 23 with dumpingstock in subsidiary SemGroup Energy Partners LP before the public learned the parent com-pany was collapsing is a MIDSTREAM service company with operations, assets and customers in theUnited States, Canada, Mexico and bought the stake from a hedge fund, Manchester Securities Corp., which hadacquired it when SemGroup Energy s former affiliate defaulted on a loan in 3, 2009 Volume 2, No.

8 16 MIDSTREAMNEWSS erving the marketplace with research, insight and transaction opportunitiesList Your Project!Call 713-650-1212 Oxy pays book-value price five-year average Phibro earnings of $371 SemGroup continues and Plains All American willcontinue to collaborate with on page 10 HOLLY continues on page 9 VITOL continues on page 5 MIDSTREAM continues on page 11 MIDSTREAMNEWST uesday, November 3, PLS To Place Your Listing: (713) 650-1212 Welcome to PLS MidstreamNews, a tri-weekly report ongathering, purchases, pipelines, mergers, acqui-sitions, capital and performances in the mid-stream marketplace.

9 In addition to the news, thereport also carries listings of property (PP), over-ride (RR) and MIDSTREAM (G) assets for sale, alongwith lands (L) and prospects (DV). Anonymous listings are coded interested in accessing only listing-package information call (or email) PLS andprovide the listing codes. Besides the MidstreamNews, PLS publishes amonthly recap of the e&p market in theProspects & Propertiesand a&d market recapsin the A&D product details can be obtained byvisit our website at , Box 4987, Houston, TX 77210 Phone: (713) 650-1212 Fax: (713) 658-1922 Website: Director of ResearchBrian Lidsky- Braswell- Benoche- DesignKathy Clark- Kelley- & Conferences Advisory BoardDoug Jacobson, Chesapeake Energy Gargani, Southwestern Energy Turnham, Goodrich Petroleum Lynn Bass, GasRock Capital, LLCC athy Sliva, BlueRock Energy Capital, LTDF rank Pottow, Greenhill CapitalAdrian Goodisman, Scotia WaterousAlan Smith, Quantum Resources ManagementDavid Marchese, Haddington Ventures, LLCTo obtain additional information on properties forsalein this MidstreamNews, please contact our listingdept: (713) 650-1212or by fax: (713) 658-1922with theproperty number.

10 Please note only clients are able to re-ceive additional MidstreamNewsnewsletter is published every three(3) weeks by PLS, Inc. Copyright 2009 by PLS, copyright law prohibits unauthorized reproduction by any means and imposes fines up to$100,000 for To UseMidstream NewsDorado completes growth equity investment in ZephyrDorado Energy Partners LPaffiliate Dorado Gas Processing LLChas provided a cap-ital injection to the Houston-based Zephyr Gas Services provides equipment rental, sales and service of treating and processing equip-ment to the natural gas industry. Zephyr designs and rents, under long-term contracts,turnkey Amine Plants, Natural Gas Coolers, Joule-Thomson Plants and other miscella-neous equipment including storage tanks.