MLP Protocol 092713

Key Adjustments:

Adjusted Northern Tier Energy (NTI) for the revised guidance provided on September 23 after the recent fire in one of their crude units. (Press Release)

News Items:

On September 24, Capital Product Partners (CPLP) announced that it has reached an agreement with BP Shipping Limited (“BP Shipping”) to extend the charters of three product tankers for an additional 18-36 months. (Press Release)

On September 24, Teekay LNG Partners L.P. (TGP) today announced that it has agreed to acquire a second 155,900 cubic meter liquefied natural gas (LNG) carrier newbuilding from Awilco LNG ASA (Awilco), a Norway-based owner and operator of LNG carriers. The vessel, the second of two vessels to be acquired by the Partnership from Awilco, is currently under construction by Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) of South Korea and is expected to deliver in the fourth quarter of 2013. Subsequent to delivery from DSME to Awilco, Teekay LNG will purchase the vessel and bareboat charter it back to Awilco at a fixed-rate for a firm period of four years, plus a one-year extension option. (Press Release)

On September 25, Enterprise Products Partners L.P. (EPD) announced an additional expansion of its LPG export terminal located on the Houston Ship Channel that will increase its capability to load fully-refrigerated, low-ethane propane. By enhancing the refrigeration capacity of the LPG export facility, Enterprise will increase its loading capacity by an additional 1.5 million barrels (“MMBbls”), or three cargoes per month. This will increase total design capacity to approximately 9 MMbbls per month upon completion of the expansion project, which is expected to occur in the first quarter of 2015. (Press Release)

On September 27, MarkWest Energy Partners (MWE) provided information regarding an August 2013 landslide which impacted a MarkWest natural gas liquids (NGLs) pipeline in a remote area of northern Wetzel County, West Virginia, causing a line break. The landslide originated from significant erosion and run-off from heavy rainfall. MarkWest shut down the pipeline and immediately commenced repairs and remediation of the impacted portions of the pipeline. Repairs and remediation to the pipeline and rights of way in the landslide impacted areas are currently underway, and MarkWest is diligently working to complete the remedial work and return the pipeline to service. The pipeline and the Mobley processing facilities will remain shut down until the pipeline remedial work is completed, which is expected to be approximately mid-October. The Sherwood processing facility continues to operate at curtailed levels and NGLs from that facility are being transported by truck for fractionation and sale. No other MarkWest facility has been impacted. MarkWest does not expect the shutdown of these facilities to have a material impact on its financial results. (Press Release)

IPO Filings:

OCI Partners (OCIP) is on its IPO roadshow expecting to price 17.5 million units at an estimated 10.75% mid-point yield on the night of October 3. OCIP owns a methanol and ammonia facility and will be a variable rate MLP. (Roadshow Video)

The MLP Protocol Monthly Analytics Report for October is now available, the November 2013 report will be available the weekend of October 25.

MLP Protocol Weekly Snapshot report: (click to open) MLPP 092713 Snapshot vFree

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