MLP Protocol 061413

Key Adjustments:

  •  On June 10, ARP announced an acquisition of 466 Bcfe of natural gas reserves from EP Energy for $733 million, expected to close during the third quarter. (Press Release)
  • Adjusted ARP for a 13 million common unit offering (upsized from 12.25 million) at $21.90 on June 10 (5.8% discount to June 7 close) and made pro forma adjustments to ARP and ATLS to reflect the impacts of the pending transactions.
  • Adjusted XTEX for a 7.2 million common unit offering (upsized from 6 million) at $20.33 on June 10 (3.6% discount to June 10 close) and adjusted distribution growth outlook upwards for XTEX and XTXI based on improved performance and improved company guidance.
  • Adjusted HCLP for the closing of its D&I Silica acquisition on June 11 (Press Release).
  • On June 11 Spectra Energy Corp. (SE) announced plans to drop all of its remaining U.S. pipeline and storage assets down to its MLP Spectra Energy Partners (SEP) by the end of the year. Management expects to provide more details concerning this transaction in its second quarter earnings call scheduled for August 6. (Press Release)
  • On June 12 WES announced two new growth projects. (Press Release)
  • Adjusted VNR for a 2.2 million 7.875% Series A Cumulative Redeemable Perpetual Preferred Unit offering at $25 per unit on June 12. (Press Release)
  • On June 14, Alerian announced planned changes to various Alerian MLP Indices, which impacted the unit prices of the MLPs involved in the changes. (Press Releases)

IPO Filings:

  • Midcoast Energy Partners, LP (MEP) filed its initial IPO S-1 on June 14 (S-1 Filing). MEP was recently formed by Enbridge Energy Partners, L.P. (EEP), to serve as EEP’s primary vehicle for owning and growing its natural gas and natural gas liquids, or NGL, midstream business.
  • OCI Partners, LP (OCIP) filed its initial IPO S-1 filing on June 14 (S-1 Filing). OCIP was formed in February 2013 to own and operate a recently upgraded, integrated methanol and ammonia production facility that is strategically located on the Texas Gulf Coast near Beaumont. OCIP will pay a variable distribution.
  • Another recently filed IPO may also be of interest, on June 7 NRG Yield, Inc. (NYLD) filed its initial IPO S-1 filing (S-1 Filing). NYLD is  a dividend growth-oriented company formed to serve as the primary vehicle through which NRG Energy, Inc. (NRG) will own, operate and acquire contracted renewable and conventional generation and thermal infrastructure assets. When the market wants yield products investment bankers will always oblige.

Subscriber Version Changes:

  • Enhanced the four Top 10 ranking charts to include the Distribution Coverage Ratio being used in the Valuation Coverage Ratio Calculation. The segment DCR study pages will all be updated to show this DCR for the July monthly report (they are currently showing the TTM DCR).
  • Adjusted Risk Rating summary page to group them all by segment.

Added the BP Statistical Review of World Energy June 2013 report in pdf format and the related Excel Workbook of data to the Resources page on the website.

The MLP Protocol Monthly Analytics Report for June is now available, the July 2013 report will be available after June 28th.

MLP Protocol Weekly Snapshot report: (click to open) MLPP 061413 Snapshot vFree

About Philip Trinder

President of MLP Protocol, investor, trader, and proponent of Master Limited Partnerships.
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