MLP Protocol 110813

Key Adjustments:

  • Adjusted Enterprise Products Partners (EPD) for an 8 million unit offering at $62.05 on November 4 (upsized from 7.5 million, 2.3% discount to prior close).
  • Added Arc Logistics Partners (ARCX) after its IPO at $19 on November 5, initial indicated yield of 8.2%.
  • Added Midcoast Energy Partners (MEP) after its IPO at $18 on November 6, initial indicated yield of 6.9%.
  • Adjusted the Top 30 ranking of projected distribution growth page such that the ranking is based on a compound sort, first sorted by projected distribution growth rates and then sorted by 3YR FYAT within equivalent distribution growth rates. (Subscriber Version)
  • All numbers and rankings will remain very fluid until all the 3Q13 financial information has been updated (56 companies updated thus far).
  • Adjusted Spectra Energy Partners (SEP) for its assert drop-down from Spectra Energy Corp (SE) that closed on November 1. (Press Release)

News Items:

  • On November 5, Ocean Rig UDW, Inc. (ORIG) announced that they are commencing the creation of a new Master Limited Partnership subsidiary with a targeted IPO launch date within the second quarter of 2014. (Presentation)
  • On November 6, NGL Energy Partners (NGL) announced that it has reached a definitive agreement to acquire all of the equity interests of Gavilon, LLC, the diversified midstream energy business owned by funds managed by Ospraie Management, General Atlantic and Soros Fund Management:

- Purchase of Gavilon’s energy business on a cash-free, debt-free basis for a cash purchase price of $890 million, which includes approximately $200 million of working capital, subject to a customary adjustment based on a target level of working capital to be delivered by Gavilon at the closing of the proposed transaction

- Expected to close in December 2013

- Immediately accretive to NGL’s distributable cash flow per unit

- Announced an increase and extension in its Credit Facility

- Announced an agreement with a group of institutional investors to sell approximately $240 million of its common units in a private placement at a price of $29.59 per unit (6.2% discount to prior close), private placement is expected to close in December 2013, contemporaneously with the closing of the acquisition.  (Press Releases)

  • On November 6, BreitBurn Energy Partners (BBEP) announced record financial and operating results for the third quarter of 2013 and conversion to a monthly distribution payment policy beginning in January 2014. (Press Release)

IPO Filings:

  • Dynagas LNG Partners, LP (DLNG) is currently out on its IPO roadshow and looking to raise $250 million by selling 12.5 million common units (before the over-allotment) at a mid-point price of $20 with an indicated mid-point yield of 7.3%. They expect to price the deal Tuesday November 12. (IPO Preview)

The MLP Protocol Monthly Analytics Report for November is now available, the December 2013 report will be available the weekend of November 29.

MLP Protocol Weekly Snapshot report: (click to open) MLPP 110813 Snapshot vFree

About Philip Trinder

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