MLP Protocol 062813

Key Adjustments:

  • Adjusted Compressco Partners (GSJK) for its 8-K filing on June 28 announcing that they had drawn $7.0 million on their revolver to fund its ongoing capital expenditures related to the expansion of its domestic fleet of compressor units as a result of increased demand. Subsequent to the borrowing, the Partnership had $21.4 million outstanding under the credit facility. (Filing)
  • Added additional Yield and Spread to Treasury data to the Markets and Levels summary table.
  • Conformed various recent chart changes to update the full Monthly report and adjusted various charts.
  • Adjusted all the Distribution Coverage Ratio Study pages to show the DCR that is used in the Valuation Coverage Ratio calculation (so they now show the lower quarterly DCR if it is less than 1.00x instead of using the Trailing Twelve Month DCR, etc., please see the definition of VCR found on page 5 of the full Monthly Report).
  • Added Valuation Coverage Ratio ranking charts to each segment section within the Monthly report.

IPO Filings:

  • On June 27 Marlin Midstream Partners (FISH <<Nice ticker) filed its initial IPO S-1 filing (Filing). FISH provides natural gas gathering, transportation, treating and processing services, NGL transportation services, and crude oil transloading services.

Other News:

  • On June 24, Crestwood Midstream Partners (CMLP) agreed to acquire a 50% stake in Jackalope Gas Gathering Services from privately-held RKI for ~$108 million. Jackalope’s gathering and processing system is located in Wyoming, giving CMLP access to the emerging Powder River Basin Niobrara Shale play. Access Midstream Partners (ACMP) owns the remaining 50% of Jackalope. (Press Release)
  • On June 24, BreitBurn Energy Partners (BBEP) agreed to acquire Whiting Petroleum’s (WLL) interests in the Postle and North East Hardesty oilfields, along with associated midstream assets, in the Oklahoma panhandle for ~$860 million. The acquired properties add ~7,400 boe/day (87% oil, 11% nat gas liquids) net production as of April 2013. The deal size means they will be issuing equity to pay for part of the acquisition, which is expected to close by July 31. (Press Release)
  • On June 25, Oxford Resource Partners (OXF) announced it closed on $175M of new credit facilities to replace its previous term loan and revolving credit facility, extending its debt maturity profile, increasing availability, enhancing its financial flexibility and putting it in a stronger position to participate in a coal market rebound. (Press Release)
  • On June 26, SunCoke Energy Partners (NYSE: SXCP) agreed to acquire Lakeshore Coal Handling Corporation for a proposed purchase price of $29.6 million. This is expected to be an all cash transaction and is anticipated to close on July 31, 2013. (Press Release)
  • On June 26, Capital Product Partners (CPLP) filed to register / sell 8.48 million common units for Selling Unitholders (Filing), total outstanding units will not change and the Company will not receive any proceeds from the sale.
  • On June 26, New Source Energy Partners (NSLP) announced an amendment that increases the borrowing base under its revolving credit facility to $75 million from the prior level of $60 million. At June 27, 2013, New Source had $48 million of debt outstanding under its Credit Facility, leaving $27 million now available for use with the increased base. The scheduled redetermination for the borrowing base occurs twice annually, which is industry standard for Secured Oil and Gas Revolving Credit Facilities. (Press Release)
  • On June 27, Enbridge Energy Partners (EEP) announced that it has exercised its options to decrease its economic interests in the Lakehead system expansions of both the Eastern Access and Mainline Expansion projects from 40 percent to 25 percent. Additionally, Enbridge Partners and certain of its subsidiaries plan to enter into an agreement on June 28, 2013 with a subsidiary of Enbridge Inc. (“Enbridge”) whereby Enbridge will purchase the accounts receivables of certain of EEP’s subsidiaries on a monthly basis through 2016 until EEP’s large growth capital commitments are permanently funded. (Press Release)
  • Kinder Morgan Updates:
  1. On June 27, Kinder Morgan (KMI, KMP, KMR) confirmed that it’s TransMountain Pipeline has been shut down as a precaution after a company crew found a small amount of contaminated soil near the line during what it called a “routine investigative dig” in the Hope area, about 93 miles east of Vancouver. (News)
  2. On June 28 they restarted the TransMountain line running the pumping stations at 80%.
  3. On June 28 they also announced that a settlement was reached in Copano Unitholder Lawsuits. (Press Release)
  4. On June 28 KMP filed to issue up to $2.2 billion of LP common units. (Filing)

The MLP Protocol Monthly Analytics Report for July is now available, the August 2013 report will be available the weekend of July 26.

MLP Protocol Weekly Snapshot report: (click to open) MLPP 062813 Snapshot vFree

About Philip Trinder

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