MLP Protocol 100413

Key Adjustments:

  • Adjusted SunCoke Energy Partners (SXCP) for the acquisition of 100 percent of the ownership interest in Kanawha River Terminals LLC (“KRT”) for $86 million. SXCP financed this acquisition with a combination of available cash and its existing revolving credit facility. KRTs operations are expected to be immediately accretive to SXCP’s cash flows and earnings, generating a projected $12 million in EBITDA on an annualized basis and contributing an estimated $6 million, or $0.18 per unit, to distributable cash flow annually. (Press Release)
  • Adjusted Teekay LNG Partners (TGP) for a 3 million unit offering at $42.62 on October 1 (3.7% discount to close).
  • Adjusted Memorial Production Partners (MEMP) for a 14.5 million unit offering at $19.90 on October 2 (5.4% discount to pre-offering close) and the closing of recent acquisitions. (Press Release)
  • Added OCI Partners (OCIP) to the Variable Rate MLP segment after its IPO at $18 on October 3.

News Items:

On September 30, Williams Partners L.P.(WPZ) announced that its Transco natural gas pipeline has filed an application with the Federal Energy Regulatory Commission (FERC) to expand its existing Leidy Line in northern Pennsylvania and its mainline from New Jersey through Alabama by 525,000 dekatherms of natural gas per day to serve growing natural gas markets along the system. The project is fully subscribed by shippers with long-term contracts. (Press Release)

On October 1, Williams(WMB) and Boardwalk Pipeline Partners (BWP) announced they have executed joint venture agreements to continue developing a liquefied petroleum gas (LPG) export facility in the Lake Charles, La. area. The proposed Moss Lake LPG Terminal would be located on the Calcasieu River and serve tanker ships transporting LPG to Asian, Latin American and European markets. The terminal is being designed to store 900,000 barrels of fully refrigerated propane and butane with a load-rate of 25,000 barrels per hour.  Williams and Boardwalk are currently working with a number of parties to reserve off-take capacity at the terminal. (Press Release)

On October 4, NuStar Energy (NS) announced that it has received binding commitments from committed shippers filling all of the space available to committed shippers on Phase 1 of the partnership’s South Texas Crude Oil Pipeline System Project. In addition, NuStar continues to receive interest in Phase 2 of the project and will evaluate whether to proceed with this phase of the project in the near future. (Press Release)

On October 4, Crestwood Midstream Partners (CMLP), Inergy (NRGY) and Inergy Midstream (NRGM) announced that Crestwood’s unitholders have overwhelmingly voted to approve the proposed merger of Crestwood and Inergy. The combination will create a fully integrated midstream partnership with a total enterprise value of approximately $8 billion. This transaction is expected to close on Monday, October 7, 2013. (Press Release)

On October 4, Eagle Rock Energy Partners (EROC) announced that effective October 1, 2013, the upstream component of the borrowing base under its senior secured credit facility has been increased from $375 million to $380 million as part of the Partnership’s regularly scheduled semi-annual redetermination by its commercial lenders. The Partnership’s total borrowing base, including its midstream component (as last determined as of June 30, 2013) and giving effect to the new upstream component, is approximately $808 million. The total borrowing capacity under the senior secured credit facility is limited to the lower of the borrowing base and the total lender commitments, which remain unchanged at $820 million. (Press Release)

IPO Filings:

  • Western Refining Logistics, LP (WNRL) is out on its IPO roadshow looking to price its deal on Wednesday October 9 at a mid-point yield of 5.75% (S-1 Filing, Roadshow).

The MLP Protocol Monthly Analytics Report for October is now available, the November 2013 report will be available the weekend of October 25.

MLP Protocol Weekly Snapshot report: (click to open) MLPP 100413 Snapshot vFree

About Philip Trinder

President of MLP Protocol, investor, trader, and proponent of Master Limited Partnerships.
This entry was posted in Weekly Updates and tagged , , , , , , , . Bookmark the permalink.

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