MLP Protocol 120613

Key Adjustments:

  • Adjusted NGL for closing of its Gavilon acquisition. (Press Release)
  • Adjusted Western Gas Partners (WES) for a 4.5 million common unit offering at $61.51 on December 2 (3% discount to prior close).
  • Adjusted Seadrill Partners (SDLP) for its share of the West Leo and West Sirius Dropdown acquisitions from Seadrill Limited (SDRL) and for an 11.2 million common unit offering (downsized from an original deal size of 12.9 million units) at $29.50 on December 3 (5% discount to prior close). (Press Releases)
  • Adjusted Lehigh Gas Partners (LGP) for a 3.1 million common unit offering at $26.90 on December 4 (4.8% discount to prior close).
  • Adjusted Crestwood Midstream Partners (CMLP) and Crestwood Equity Partners (CEQP) based on their 2014 Strategic Plan. (Presentation)
  • Adjusted Golar LNG Partners (GMLP) for the acquisition announced on December 5 and for the equity offering commenced in conjunction with the acquisition, assumed the equity deal will price at $29.50 (4.6% discount to prior close) but will adjust further once the actual price is known. Please see additional details below.

News Items:

  • On December 2, QEP Resources, Inc. (QEP) announced a decision to pursue a separation of its midstream business, QEP Field Services Company (“QEP Field Services”), including the Company’s interest in QEP Midstream Partners, LP (“QEPM”) (QEPM). The decision is a result of the Board’s continuous review of strategic alternatives to maximize shareholder value that also led to the creation of QEPM earlier this year. (Press Release)
  • On December 3, QR Energy (QRE) announced converting its quarterly distribution policy to a monthly distribution policy commencing in January 2014. (Press Release)
  • On December 3, LINN Energy (LINE) updated its fourth quarter 2013 guidance, posted a new investor presentation and announced that Institutional Shareholder Services (“ISS”) recommends unitholders and shareholders vote “FOR” all proposals including the proposed merger with Berry (BRY) at the meetings of LINN Energy unitholders and LinnCo shareholders scheduled for Monday, December 16, 2013. (Press Release)
  • On December 4, Access Midstream Partners (ACMP) announced the pricing of an underwritten public offering of 6 million common units owned by Global Infrastructure Partners II (GIP II). GIP II offered the units to the public at $51.45 (4.7% discount to prior close) and has granted the underwriter a 30-day option to purchase up to 900,000 additional common units. The Partnership will not receive any of the net proceeds from this offering and the number of outstanding common units will remain unchanged. (Press Release)
  • On December 5, Golar LNG Partners (GMLP) announced that it has entered into an agreement to acquire the ownership interests in the company that will own and operate the Golar Igloo, a floating storage and regasification unit (“FSRU”), from Golar LNG Limited (“Golar”) for an aggregate purchase price of $310.0 million.  The Partnership will finance the purchase price in part by the assumption of outstanding bank debt in respect of the Golar Igloo on the closing date of the acquisition (which the Partnership estimates will be approximately $161.6 million).  The Partnership expects to fund the remainder of the purchase price by issuing equity. On December 5, Golar LNG Partners (GMLP) announced that it plans to offer 5.1 million common units. In addition, Golar LNG Limited (GLNG) is offering 3.4 million common units, representing limited partner interests, in the offering as a selling unitholder. (Press Releases)

IPO Filings:

  • Valero Energy Partners LP (VLP) has commenced its roadshow and it looking to raise $300 million at an indicated mid-point yield of 4.25%, pricing Tuesday 12/10. (S-1 filing, Roadshow)
  • Cheniere Energy Partners LP Holdings (CQH) has commenced its roadshow and it looking to raise $600 million at an indicated mid-point yield of slightly less than 8.5%, after taking out taxes at CQH on the distributions from Cheniere Energy Partners (CQP), pricing Thursday 12/12. (S-1 filing, Roadshow)

The MLP Protocol Monthly Analytics Report for December is now available, the January 2014 report will be available the weekend of December 27.

MLP Protocol Weekly Snapshot report: (click to open) MLPP 120613 Snapshot vFree

About Philip Trinder

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