MLP Protocol 112213

Key Adjustments:

  • Adjusted Oiltanking Partners (OILT) for a 2.6 million common unit offering at $61.65 on November 18 (4.3% discount to close, offering was upsized from 2.6 million units).
  • Adjusted Tesoro Logistics Partners (TLLP) for a 6.3 million common unit offering at $51.05 on November 18 (3.7% discount to close, offering was upsized from 6.3 million units). TLLP plans to use net proceeds to fund a portion of its recently announced acquisition from its GP/Sponsor (Additional detail below).
  • Adjusted the 4 full ranking charts to split them into 2 charts each to improve readability, all are still grouped and color coded by MLP segment (3YR FYAT, EV / ADJ EBITDA, P / DCF per LP, 3YR FYAT / VCR). (Subscriber Version)

News Items:

  • On November 18, Tesoro Corporation (TSO) and Tesoro Logistics (TLLP) announced that TLLP has entered into a definitive agreement with TSO to acquire the majority of its remaining Los Angeles logistics assets (“Los Angeles Logistics Assets”). Under the terms of the agreement, TLLP will acquire the Los Angeles Logistics Assets for total consideration of $650 million with an expected closing date scheduled for later in the fourth quarter of 2013. (Press Release)
  • On November 18, Memorial Production Partners (MEMP) announced the commencement of an underwritten public offering of 7,061,294 common units representing limited partner interests owned by its sponsor, Memorial Resource Development LLC (MRD).  The Partnership will not receive any proceeds from the sale of common units in the offering, and the number of common units outstanding will remain unchanged. The offering priced at $19.34 per unit which was a 5.4% discount to the closing price prior to the announcement. (Press Release)
  • On November 19, Enterprise Products Partners (EPD) announced that the eighth natural gas liquids (“NGL”) fractionator at the partnership’s Mont Belvieu, Texas complex is now operational. The new unit, which has the capability to fractionate up to 85,000 barrels per day (“BPD”) of NGL, increases total NGL fractionation capacity at Enterprise’s Mont Belvieu facility to approximately 655,000 BPD. (Press Release)
  • On November 21, OCI N.V. (NYSE Euronext: OCI) announced that it plans to build a new greenfield world scale methanol plant in Beaumont, Texas. The plant is expected to have a capacity of up to 5,000 metric tons per day (tpd), equivalent to approximately 1.75 million metric tons per annum (mtpa), and is expected to start production in late 2016. It will be the first methanol facility of this scale in the United States and will be the country’s largest methanol production facility based on nameplate capacity. Although OCI N.V. currently intends to offer all or a portion of the facility to OCI Partners (OCIP) at the appropriate time following completion of the facility, it has no obligation to do so, and OCI Partners LP has no right to acquire any interest in the facility from OCI N.V. (News Item)
  • On November 21, Hi-Crush Partners (HCLP) announced a secondary public offering of 702,851 common units representing limited partner interests in the Partnership by Hi-Crush Proppants LLC (the “Selling Unitholder”).  The Selling Unitholder owns Hi-Crush GP LLC, the Partnership’s general partner.  After giving effect to the sale of common units by the Selling Unitholder in the proposed offering, the Selling Unitholder will continue to own all of the Partnership’s incentive distribution rights, 13,640,351 subordinated units and 3,750,000 Class B Units.  The Partnership will not receive any proceeds from the sale of common units in the offering, and the number of common units outstanding will remain unchanged. The offering priced at $31.15 per unit which was a 2.9% discount to the closing price prior to the announcement. (Press Release)

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 112213 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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