MLP Protocol 082313

Key Adjustments:

  • Adjusted American Midstream Partners (AMID) for their equity restructuring, including pro forma adjustments to their Distribution Coverage Ratio. (Press Release)
  • Adjusted USA Compression Partners (USAC) for their pending acquisition, additional detail below.
  • Added summary tables showing Segment, Risk Rating and Current Position information next to the four “Top 15 Rankings” charts (Subscriber Version).

News Items:

  • On August 13, USA Compression Partners (USAC) announced that it had entered into a definitive agreement to acquire approximately $187 million of compression assets owned by S&R Compression, LLC (“S&R”), a Tulsa-based company majority owned and controlled by Argonaut Private Equity, an affiliate of George B. Kaiser. In exchange for the contribution of assets, the Kaiser affiliate will receive USAC common units representing 20% of the pro forma limited partner interest in USAC (currently estimated to be 7.4 million units). USAC expects this transaction to be immediately accretive to distributable cash flow and to close in the third quarter. (Press Release)


  • On August 14, Martin Midstream Partners (MMLP) announced that certain affiliated investment funds managed by Alinda Capital Partners (“Alinda”) will acquire a 49% voting interest (50% economic interest) in MMGP Holdings LLC (“Holdings”), a newly-formed sole member of Martin Midstream GP LLC (“MMGP”), the general partner of MMLP. Alinda is one of the world’s largest infrastructure investment firms with approximately $7.8 billion in equity commitments. The transaction is expected to close in the third quarter of 2013 and is subject to customary closing conditions. (Press Release)


  • On August 20, Rhino Resource Partners (RNO) announced that David G. Zatezalo, President, Chief Executive Officer and Director of Rhino GP LLC, the general partner of the Partnership, is retiring from the office of President of the general partner of the Partnership and all subsidiaries as of August 20, 2013.  The general partner of the Partnership has named Christopher I. Walton, Rhino GP LLC’s Senior Vice President & Chief Operating Officer, to the position of President.  Mr. Zatezalo will retire as CEO on or before October 18, 2013.  Mr. Zatezalo intends to continue to remain active in the Partnership going forward.  The Partnership expects to conclude an agreement where Mr. Zatezalo will continue his employment with the Partnership in a role that requires a reduced time commitment.  Upon stepping down as CEO, Mr. Zatezalo will become Chairman of the Board of Directors of Rhino GP LLC.  Mark Zand, the current Chairman, will remain a director of Rhino GP LLC. (Press Release)

The MLP Protocol Monthly Analytics Report for August is now available, the September 2013 report will be available the weekend of August 30.

MLP Protocol Weekly Snapshot report: (click to open) MLPP 082313 Snapshot vFree

About Philip Trinder

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