Red Rover, Red Rover, send Rover Right Over.


On Feb. 2, 2017, FERC finally granted the long-awaited certificates to begin construction on Rover Pipeline and related expansions of Panhandle and Trunkline. The issuance is a huge sigh of relief for ETP and others given Feb. 3 is Commissioner Norman Bay’s last day and represents the last day the FERC would have a quorum to grant such an issuance until a new commissioner is appointed. Now that hurdle is passed, ETP can begin construction of the pipeline in advance of the anticipated start date later this year. According to a Dec. 16 filing by ETP, the company needed FERC to issue the certificate by the end of December so that Rover could begin construction by mid-January and start flowing up to 1.55 Bcf/d in July and 3.15 Bcf/d in November 2017. Based on this timeline and today’s issuance, EDC currently anticipates a start date closer to August with full service by December but it will certainly be a topic of discussion on the 4Q16 earnings call. Rover and related projects on Panhandle and Trunkline are anticipated to cost over $4 billion and will increase EBITDA for ETP by around $520 million. Rover is 65% owned by ETP and 35% by Traverse Midstream. (Ticker: ETP)

About The Author Justin Carlson

I have over 10 years of experience in data analysis, research, and consulting across the energy sector. I currently serve as Vice President of Research and Managing Director at East Daley Capital, an energy assets research firm that is changing how investors look at midstream energy risk with an asset-driven information service that combines proprietary research with a trusted team of unbiased, experienced energy analysts. My insights and analysis bring greater transparency to the energy financial market by quantifying potential risks by asset and enabling investors to make more informed and accurate projections and investments. Prior to joining East Daley Capital, I was a senior manager at Platts, a division of McGraw Hill Financial, which acquired Bentek Energy, where I was a senior member of the leadership team.