Shell Midstream growing in GoM

Shell Midstream, the general partner of Houston-based Shell Midstream Partners LLC (SHLX), will forego $50M in incentive distribution rights in 2019, and will reinvest cash back into the business. Shell Midstream will reduce incentive distribution rights by $17M in the first two quarters, and $16M in Q3, according to a filing with the U.S. Securities and Exchange Commission. Shell Midstream is a master limited partnership under the Netherlands-based Royal Dutch Shell PLC. Shell Midstream has been growing its offshore pipelines, taking the $1.22 billion Amberjack Pipeline from its parent company in May, and grabbing volume growth in the eastern corridor of the Gulf of Mexico, according to its 3Q report. Shell Midstream produced $470.1M in 2017 revenue ($391.8M net income), according to its recent annual financial report. The Gulf of Mexico pipeline currently transports about 300,000 barrels per day, and is expected to grow to about 400,000 by the end of 2019. The pipeline has delivery options along the Texas and Louisiana coasts. (Source: Houston Business Journal 12/25/18)