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Some Pipeline Companies Gain Private-Equity Backers

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Bloomberg
May 7, 2014

Pipeline companies have come down with shale fever.

They’re so eager to grab a stake in the U.S. energy boom that they’re building transmission networks before getting the traditional commitment from drillers that anyone will actually use them.

Instead of negotiating guarantees from drillers that they’ll pay fees or pump a minimum volume of oil and gas through their systems, pipeline companies such as Eagle Rock Energy Partners LP (NASDAQ: EROC) and Oryx Midstream Services LLC say they are signing agreements based on the acreage of the fields the producers ...


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