MLP Protocol 083013

Key Adjustments:

Increased forward distribution growth outlook for EMES based on the information management provided at an event at the New York Stock Exchange. During the course of that presentation, Messrs. Shearer and Lane provided certain information about the Partnership that they mistakenly believed already had been made public. In particular, Messrs. Shearer and Lane discussed management’s belief that the previously disclosed strategies of the Partnership to increase revenues and lower costs could eventually result in an increase in distributable cash flow to $4.00 per unit annually (compared to the ~$2.80 run rate provided in the IPO prospectus). They also stated that management believes that current market prices for spot sales of 20/40 frac sand product may be stabilizing at around $56 to $60 per ton. Messrs. Shearer and Lane further expressed their belief that because of increasing upward demand pressures on product prices and additional customer contracts, the Partnership may not be able to extend the temporary preferred prices it currently offers to one of its largest customers beyond October 2013. (8-K Filing)

Made some conforming adjustments to various pages to match more recent data provided in the Subscriber Version of the Weekly Snapshot (Subscriber Version).

News Items:

On August 26, Genesis Energy (GEL) announced it has completed engineering work, has filed all necessary permits, has executed the necessary railroad agreements and is preparing to commence construction on a new crude oil unit train unloading facility capable of unloading up to two unit trains per day, located in Raceland, Louisiana approximately 20 miles southeast of St. James (Raceland Rail Facility). (Press Release)

On August 26, ONEOK Partners (OKS) announced that it will invest approximately $440 million in the natural gas liquids-rich area in the Powder River Basin in Wyoming. OKS will purchase a 50-million cubic feet per day (MMcf/d) natural gas processing facility – the Sage Creek plant and related natural gas gathering and natural gas liquids (NGL) infrastructure – in western Converse and Campbell Counties, Wyo., for $305 million from an undisclosed seller and also invest $135 million to upgrade and construct natural gas gathering and processing related infrastructure, NGL gathering pipelines and well connections. (Press Release)

On August 26, CVR Refining (CVRR) announced that the fluid catalytic cracking unit (FCCU) at its Coffeyville refinery is expected to remain offline until mid-September due to additional necessary repairs. As a result of the FCCU outage, total crude throughputs for the Coffeyville and Wynnewood refineries in the 2013 third quarter are expected to be between 145,000 barrels per day and 155,000 barrels per day. The FCCU outage will not affect the previously announced CVR Refining distribution outlook. (Press Release)

On August 27, Plains All American Pipeline (PAA) announced that it has submitted a proposal to the independent directors of the board of directors of the general partner of PAA Natural Gas Storage (PNG) to acquire all of PNG’s outstanding publicly-held common units through a unit-for-unit exchange. PAA is proposing consideration of 0.435 common units of PAA for each issued and outstanding publicly-held PNG common unit in a transaction that would be structured as a merger of PNG with a wholly-owned subsidiary of PAA. The proposed consideration represents a value per PNG common unit of $22.74 based on the trailing 10-day average closing price of PAA’s common units through August 26, 2013. (Press Release)

On August 28, LRR Energy (LRE) filed to offer up to 8.5696 million common units on behalf of selling shareholders, including 6.72 million common units that may be issued upon conversion of 6.72 million subordinated units, LRE will receive no proceeds from the sale. (Filing)

On August 30, USA Compression Partners (USAC) announced that it has closed the previously announced acquisition of compression assets owned by S&R Compression, LLC. (Press Release)

The MLP Protocol Monthly Analytics Report for September is now available, the October 2013 report will be available the weekend of September 27.

MLP Protocol Weekly Snapshot report: (click to open) MLPP 083013 Snapshot vFree

About Philip Trinder

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