MLP Protocol 071913

Key Adjustments:

  • Adjusted EQM for a 11 million common unit offering at $43.50 on July 16 (6.3% discount to July 15 close, upsized from original deal size of 10 million units) and made pro forma adjustments for the Sunrise Pipeline acquisition.
  • Adjusted BBEP for Oklahoma Panhandle acquisition.
  • Adjusted TLP for a 1.45 million common unit offering at $43.32 on July 18 (4.0% discount to July 18 close).

Other News:

  • On July 15, Memorial Production Partners (MEMP) announced that it has signed definitive agreements to acquire certain oil and gas properties in the Permian Basin, East Texas, and the Rockies, from its sponsor, Memorial Resource Development LLC, and affiliates of Natural Gas Partners for an aggregate purchase price of approximately $606 million, subject to customary purchase price adjustments. The transaction will have an effective date of July 1, 2013 and is expected to close in October 2013. (Press Release)
  • On July 15, BreitBurn Energy Partners (BBEP) announced that it completed the acquisition of oil properties and associated midstream assets in the Oklahoma Panhandle from Whiting Petroleum Corporation (WLL), for a preliminary adjusted purchase price of approximately $846 million, including the approximately $86 million deposit previously paid. The preliminary purchase price adjustments are interim adjustments; the final adjusted purchase price will be determined post-closing, subject to customary post-closing adjustments. The purchase was made pursuant to a definitive agreement previously announced on June 24, 2013. The Partnership also completed the previously announced acquisitions of additional interests in certain of the acquired assets from other sellers for an additional $30 million. As planned, the Partnership used borrowings under its newly amended and expanded credit facility to fund the transaction. Including the total consideration for this acquisition, the Partnership has approximately $1.05 billion in borrowings outstanding under its amended credit facility which has a total borrowing capacity of $1.40 billion, leaving the Partnership with net additional borrowing capacity of approximately $350 million. (Press Release)
  • On July 15, EQT Midstream Partners (EQM) and EQT Corporation (NYSE: EQT) today announced that EQT Midstream Partners has agreed to acquire EQT Corporation’s (EQT) wholly owned subsidiary, Sunrise Pipeline, LLC (Sunrise), for $507.5 million cash and $32.5 million of common and general partners units. EQM also agreed to pay additional consideration of $110 million to EQT upon the effectiveness of a new transportation agreement with a third-party that the Partnership expects to become effective post-closing. In addition, the Partnership announced a $0.40 cash distribution per unit for the second quarter 2013, which represents a $0.03 or 8% increase over the first quarter 2013 cash distribution per unit. (Press Release)
  • On July 15, Atlas Pipeline Partners (APL) announced plans to construct a new 200 MMCFD cryogenic processing plant to accommodate rapidly increasing Permian production.  The new facility, to be known as the Edward plant, will be constructed to have initial capacity of 100 MMCFD, which is expected to be in service in the second half of 2014.  As production increases behind the system, placement of additional compression and refrigeration equipment to increase the plant’s capacity to 200 MMCFD, will come in service as needed.  The Partnership expects cash flows from the Edward expansion to materialize in meaningful amounts throughout 2015 and beyond.  (Press Release)
  • On July 15, Access Midstream Partners (ACMP) filed a shelf registration for up to $300 million of common units. (Filing)
  • On July 17, Energy Transfer Partners (ETP) announced that the Missouri Public Service Commission (MoPSC) today issued an order authorizing the sale of the assets of Missouri Gas Energy (MGE) to Laclede Gas Company, a subsidiary of The Laclede Group, Inc. (NYSE: LG). MGE is a division of Southern Union Company, a wholly-owned subsidiary of ETP and sale is expected to close on or after September 1, 2013. (Press Release)

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 071913 Snapshot vFree

About Philip Trinder

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