MLP Protocol 062113

Key Adjustments:

  • Adjusted Brookfield Infrastructure Partners, LP (BIP) for its announced sales of its Timber Assets:
  1. On June 16 BIP announced that it  signed definitive agreements to sell its interest in its U.S. Pacific Northwest timberland operations for approximately $790 million.
  2. The buyer will assume BIP’s proportionate debt of approximately $320 million resulting in net proceeds from the transaction of approximately $470 million.
  3. This transaction is expected to be completed in July 2013.
  4. On June 7, 2013, Brookfield Infrastructure completed the sale of the remainder of its Canadian BC Coastal timberland operations for net proceeds of approximately $170 million.
  5. BIP will generate total proceeds before taxes of approximately $640 million from both transactions and upon closing, it will not hold any timberland assets. (Press Release)
  • Adjusted Tesoro Logistics, LP (TLLP) for its recent acquisitions:
  1. On June 19, TLP announced the closing of Northwest Product Pipeline and Terminal System (“Northwest Products System”) for approximately $355 million from Chevron Pipe Line Company and Northwest Terminaling Company.
  2. On June 3, TLP closed the acquisition of the first portion of logistics assets associated with purchase of the BP Southern California Refining and Marketing business (“Carson”) by Tesoro Corporation for total consideration of $640 million.  (Press Releases)
  • Crestwood Midstream Partners LP (CMLP) / Inergy, LP (NRGY) / Inergy Midstream, LP (NRGM) June 19 Merger Updates:
  1. NRGY announced today that it has completed the distribution on a pro rata basis to NRGY unitholders the approximately 56.4 million common units of NRGM previously held by Inergy.
  2. Each NRGY unitholder received 0.432052 NRGM common units for each NRGY unit.
  3. No fractional NRGM common units were distributed, NRGY unitholders received a cash payment equal to the value of such fractional unit based on the closing price of NRGM’s common units on June 17, 2013. (Press Release)
  4. CMLP announced that, Crestwood Holdings has acquired the general partner, and thus control, of NRGY.
  5. Merger of Crestwood Midstream with Inergy Midstream, is expected to occur in the third quarter of 2013. (Press Release)
  6. Pro forma adjustments will be made upon final closing.

IPO Filings:

  • On June 17 World Point Terminals, LP (WPT) filed its initial IPO S-1 filing (Filing).  WPT is a fee-based, growth-oriented Delaware limited partnership recently formed to own, operate, develop and acquire terminals and other assets relating to the storage of light refined products, heavy refined products and crude oil.

Other News:

  • On June 17 Plains All American Pipeline (PAA) shut its Kemp pipeline after a spill of ~950 barrels of condensate in Alberta. (WSJ News Item)
  • On June 18 PetroLogistics (PDH) successfully completed repairs to its propane dehydrogenation facility and the facility has resumed propylene production. The facility was closed earlier this month for repairs on two of the eight reactors at the plant. Total costs for all completed repairs are expected to be less than $2.5M. (Press Release)
  • On June 18 Florida Gas Transmission natural gas line, owned by Energy Transfer Partners (ETP), exploded in rural Louisiana. No injuries or significant property damage was reported; a section of the pipeline was shut and natural gas rerouted to customers along other parts of the system. (Reuters News Item)
  • On June 19, Memorial Productions Partners, LP (MEMP) filed to register / sell 12.4 million common units for Selling Unitholders (Filing), so MEMP will not receive any proceeds from the offering and the total outstanding units will not change. The underwritten sale of the units has not happened yet but expect some MEMP unit price weakness surrounding the marketing of those units (even though it is not dilutive).

The MLP Protocol Monthly Analytics Report for June is now available, the July 2013 report will be available next weekend.

MLP Protocol Weekly Snapshot report: (click to open) MLPP 062113 Snapshot vFree

About Philip Trinder

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