MLP HINDSight

MLPs were down this week (-0.4%), despite continued strength in the broader stock market (S&P 500 was up 2.1%).  Of note, year over year, MLPs and the S&P 500 have produced almost exactly the same total return.  Gold was down big this week again.  Natural gas bounced above $4 again and NGL prices still suck.  Also, 10-year treasury rate crept up to 1.95%, but still ridiculously low.

I was curious to get a better sense of what’s been driving the S&P 500 higher lately.  Below is a chart breaking down the total return of the S&P 500 segment ETFs and the MLP Index.  Retail is the only S&P 500 sector that’s outperforming the MLP Index so far this year, driven by companies like Whole Foods and Netflix.  Materials (Monsanto, Dow Chemical, Du Pont biggest holdings) is bringing up the rear, followed closely by Technology (Apple, Microsoft and Google).  Besides tech, seems like sectors doing relatively poorly are the traditionally defensive sectors.  MLPs (considered by many MLP investors to be conservative investments) stand out alongside traditionally cyclical sectors, but YTD MLP performance is distorted by what appears to be the mythical re-valuation of MLPs higher to reflect lower yields closer to REITs and Utilities that the sector’s been waiting for.   Either that or yield-starved exuberance that could lead to a sharp MLP selloff at some point….

MLPs hit the capital markets hard this week, selling $1.5bn in MLP units (not including overallotment options or ATMs), and $1.1bn of that was primary issuance (CVRR’s $369mm deal was all secondary).  It was the biggest equity issuance week of the year  so far.  Performance of these deals in the market after pricing has been mixed, but not poor enough to discourage other MLPs from making their withdrawals from the capital markets in the next few weeks.  There was also a hefty portion of M&A announced this week, outlined below in the news section.

This week, the sector’s focus will be on the NAPTP conference, which (as mentioned in my conference hacks post from last year) is the biggest MLP conference of them all.  It will be in a new hotel, but same area of Connecticut.  I look forward to seeing old friends, meeting management teams of a few recent MLP IPOs, and getting everyone’s general mood.  The last three years, the conference happened right around the time of big negative moves in MLPs.  This year, I expect the mood will be more upbeat from investment professionals, and definitely from MLP management teams.  I also expect to hear some disparaging remarks from traditional MLPs concerning the rapid expansion of the MLP wrapper to other asset classes.

Before I get to the Winners & Losers and News…in case you were wondering, I got 2 out of 5 numbers and no powerball in tonight’s $600mm drawing (cash value was actually$376.9mm).  If it wasn’t me, I sincerely hope one of you readers has the winning numbers and might be interested in having some of that new wealth managed, because what better place to put your winnings in than the MLP space?  If nobody won tonight, we could be looking at nearly $1bn face value drawing next week, which would be BANANAS, especially in the neighborhood around me, which includes a few gas stations that are key deposit takers for this particular “Redneck Retirement Plan” (as my dad, an avid lottery player, was fond of calling it).  Even understanding the math and knowing that some people refer to Lotteries as a “Stupid Tax”, I play the lottery occasionally for the entertainment value it provides my imagination, and can justify it easily as someone who doesn’t drink because it costs less than a drink to play.  What’s your excuse?

Winners & Losers

Small cap MLPs led the winners this week.  SMLP was the best performing among them, after raising guidance on Monday with its earnings release and especially Friday after SMLP announced that its GP commenced operations of the Polar Crude Oil and Water Gathering System, which is a future drop down for SMLP.  LGP’s earnings release and 3.4% distribution increase led to its big move this week.  On the downside, only 1 of the 4 MLPs  (TCP) that priced equity offerings this week was down, showing just how open the capital markets are to MLPs.  Expect that to lead to more equity offerings.  GSJK made it into the bottom 5 for the second straight week.

EVEP continues to drop and is getting close to the cellar, but for now OXF still holds the bottom spot for now.  EVEP was also the only MLP in the bottom 5 for the week that’s also in the bottom 5 for the year.  The order and makeup of the bottom 5 stayed the same since last week.  SMLP shot to the top of the winners year to date this week and simultaneously holds both the top spot for the week and year to date.  

Taking a broader view, GPs still lead everything year to date, and variable distribution MLPs are under-performing the rest of the MLP sector.  Generally speaking, as long as you had more money in equities than gold at the beginning of the year, you are doing well on paper.

News of the (MLP) World 

Interesting Articles

• Philip Trinder (MLP Protocol) did a nice piece on MLPs and interest rates in reaction to a comment by Jeff Gundlach (Seeking Alpha)
• WSJ with a sotry on the Freeport terminal receiving approval, LNG and natural gas prices, and both sides of the natural gas export argument (WSJ Article)

Equity

• TC Pipelines (TCP) prices offering of 7.7mm common units at $43.85/unit, raising $337.7mm in gross proceeds

• Rose Rock Midstream (RRMS) files S-3 to register up to $500mm in primary debt or equity and 12.5mm common units

• CVR Refining (CVRR) prices offering of 12.0mm common units at $30.75/unit, raising $369.0mm in gross proceeds to be used to redeem common units owned by its GP

• Western Gas (WES) prices offering of 6.1mm common units at $61.18/unit, raising $373.2mm in gross proceeds

• Suburban Propane (SPH) prices offering of 2.7mm common units at $48.16/unit, raising $130.0mm in gross proceeds

• Tallgrass Energy (TEP) prices IPO of 13.05mm units at $21.50/unit (final prospectus)
  • Priced at 5.35% yield, total gross proceeds of $280.6mm
  • Priced below the filing range of $22-$24 per unit, opened at $22.00, closed flat at $21.50

Debt

• StoneMor (STON) prices private placement of $175mm of 7.875% senior notes due 2021 at 97.832% to yield 8.25%

M&A / Growth Projects

• Tesoro Logistics (TLLP) announces $640mm acquisition of first portion of logistics assets associated with BP Southern California Refining and Marketing Business that Tesoro is acquiring (press release)
  • TLLP to acquire the first portion of logistics assets associated with the BP Southern California Refining and Marketing business (Carson) acquisition by Tesoro’s subsidiary, Tesoro Refining & Marketing Company LLC
  • Acquisition will close concurrent with Tesoro’s closing of the Carson acquisition, scheduled for 2Q 2013
  • TLLP expects $60-$65mm in estimated annual EBITDA from these assets
  • Assets include:
    • Six marketing and storage terminal facilities with a total combined throughput capacity of 224,800 bbls/day
    • Approximately 6.4mm bbls of storage capacity

• TC PipeLines, LP (TCP) announces acquisition of additional 45% interest in Gas Transmission Northwest LLC and Bison Pipeline LLC from TransCanada for $1.05bn (press release)
  • TCP to acquire an additional 45% interest in each of Gas Transmission Northwest LLC (GTN) and Bison Pipeline LLC from GP Transcanada
  • Expected to be immediately accretive to TCP’s cash flow and earnings (TCP to increase distribution 3.8% next quarter)
  • TCP to assume $146mm of GTN’s debt, leaving cash of $904mm, which will be funded with debt and equity, including proceeds from $337.7mm equity offering priced on 5/16

• Hi-Crush (HCLP) announces acquisition of frac sand distributor D&I Silica, LLC for $125mm in cash and equity (press release)
  • HCLP to acquire independent frac sand distributor D&I Silica, LLC in a transaction to close in 2Q 2013
  • Will expand HCLP’s business into transportation, marketing and distribution of Northern White frac sand
  • $125mm purchase price includes $95mm in cash and 1.579mm units priced at $19/unit
  • D&I has 98 employees and operates through an extensive logistics network of rail-served origin and destination terminals in the Midwest near supply sources and throughout Pennsylvania, Ohio and New York

• Mid-Con Energy (MCEP) announces acquisition of additional interests in existing Mid-Con Energy waterfloods for $28.1mm (press release)

 

MLPs powered higher this week, with the MLP Index rising 2.5% including distributions.  The S&P 500 continued to rise as well, up 1.3%.  Commodities were generally weak, which many were commenting had to do with USD strength.  Gold continued its slide, down 1.9%. Natural gas dropped below $4.00/mmbtu again, propane and ethane prices were weak and oil prices were flat.  10-year treasury rates popped as well.  It was the 5th week that the MLP Index was up more than 2% in a week so far this year, compared with only 8 such weeks all of 2012 and 12 in 2011.  MLPs stand at fresh all-time highs again.

It was a bad week all around for any gloom and doomers still left.  For the month of May so far, the MLP Index is up 1.9%, on pace to break its streak of 3 straight horrible May’s, and making most MLP prognosticators (myself included) look silly… Earnings season is largely behind us, and this week we’ll enter follow-on equity offering season again.  But if fund flows continue into the MLP space, those follow ons may get sucked up by MLP buyers.

Anticipation is starting to build for the big NAPTP conference at the end of the month.  Should be another very big turnout and lots of discussion of MLP valuations and where we’re headed for the rest of the year.  Certainly a different conversation that in the last few conferences when volatility and MLP weakness were the topics du juor.

Winners & Losers

PSE had the biggest week, after PSE disclosed a buyout offer it received from PXD.  It is amazing that the upstream MLP with the least hype and investor interest gets a buyout offer this week and is all of a sudden the one upstream MLP worth owning this year relative to the MLP Index.  After the CPNO buyout when it seemed CPNO was destined to pay a flat distribution indefinitely makes me think maybe we ought to start taking a harder look at MLPs that haven’t raised distributions in years, but probably not given that these were both pretty unique cases.

Other big movers were MWE (up on earnings release and M&A news), GEL and TCP on no news, and NRGY on the big news of the week that it will be teaming up with Crestwood (and First Reserve), and dramatically increasing IDR cash flow.  On the downside, NRGM investors weren’t thrilled with the idea of dilution and a flood of NRGM units being distributed to NRGY investors, and maybe a slight reaction to adding gathering volume risk to their list of risk factors with the CMLP addition.  The team of LNCO and LINE had another rough week, despite their best PR efforts on Monday with an appearance on Mad Money.  It should be noted that LNCO (+8.5%) and LINE (+3.6%) are up for the year.  Please don’t ask me my opinion of either one (unless you’re a client, of course), I can only say that I have consulting clients that own LINE, and in my discretionary accounts we do not own LINE or LNCO as of now.

The YTD 40% club swelled this week to 14 MLPs, the top 5 of which are listed below.  Liquids and refined products transportation MLPs are doing well (DKL, BPL, GEL, GLP, TLLP, BKEP), but natural gas pipeline MLP EQM leads everyone.  GEL broke into the top 5 this week, replacing TLLP.  On the downside, the same 5 are on the bottom 5 list as were there last week, although OKS was up this week and is close to escaping the cellar.

For the year, MLPs are dominating, and extended their lead over the S&P 500 year to date with another big week.  MLP GPs are doing even better, which has typically been the case when MLPs are strong.

IPO Update

The IPO wing of the MLP sector is starting to heat up.  Emerge Energy Services (EMES) priced its IPO this week, the first variable distribution oilfield services MLP to go public.  Tallgrass Energy Partners (TEP) hit the road this week, expecting to price early next week at a midpoint yield (5.23%) that would be the second lowest MLP IPO yield of all time.  Also, QEP Midstream, a midstream MLP formed by QEP Resources, filed its initial S-1 for an MLP IPO this week.

Below is an updated list of the 2013 IPOs to date and the backlog of IPOs.  There have been 6 MLP IPOs already this year, which is an unusually high number for a sector that usually starts slow with its IPOs, but early 2013 action was driven by MLPs that didn’t have a chance to get out in the very crowded late 2012.  In 2012 by this date, there had been only 1 MLP IPO, and we went on to see a total of 13 MLP IPOs in 2012.

Another difference between 2012 and this year: MLP IPOs aren’t popping like they did last year.  In 2012, on average MLP IPOs saw their prices pop 11.3% in the first day of trading, 13.4% if you average just the 10 traditionally structure (vs. variable) MLPs.  So far this year, MLPs have averaged negative price action in the first trading day (-1.2%).  4 of the 6 MLP IPOs have closed below their IPO price on the first trading day, compared with only 1 of 13 in 2012 and 5 of 13 in 2011.

One more thing to note, we aren’t seeing the highest quality assets coming to market or at least that’s the market perception.  I’ll try to prove this point with IPO yields.  The highest quality assets with the most growth potential tend to produce MLPs with the highest MLP IPO yields.  MPLX at 4.77% is the record low, other 7% or lower IPOs since 2011 include TLLP, EQM, OILT, TLLP, GMLP.  In 2013, we’ve seen no MLP with an IPO yield at 7% or below.  That will change with Tallgrass pricing next week, but will that mean a meaningful pop from Tallgrass?  I guess we’ll see.

(click to enlarge)

Also interesting this week in light of another midstream MLP consolidation: with a lack of midstream IPOs so far this year, and the increase in consolidations, we might see the end of 2013 end with fewer midstream MLPs than we started with.  With Tallgrass and QEP coming to market and others in the queue, that’s unlikely, but it would have been a really interesting phenomenon if it were to happen.  That just highlights how we might be reaching saturation in terms of the number of individual MLPs it takes to own the available (i.e. not owned by major corps.) midstream infrastructure in the U.S.

Below is the pipeline of pending MLP IPOs.  Quicksilver announced that they were cancelling their MLP IPO process, not a surprise given the last updated prospectus was dated June of 2012.  Also not listed below is Tallgrass which is on the road now.  Several others haven’t updated their S-1s in at least 10 months.  So, the visible MLP IPO queue is 2 at this point, but there are several other companies planning MLP IPOs.  Some of those may already be filed confidentially.

Final Note before News: Financial writer Alan Abelson died at age 87 this week.  He had worked at Barron’s since 1956 and started writing his weekly column in 1966, 47 years ago!  I was 28 when I started writing my blog, will I still be writing it in 47 years?  Will any of you still be reading it? Will I still be alive? Will MLPs still be around?  Who knows, but it was an amazing run for a very popular financial writer that has helped Barron’s remain a viable weekly print publication in a digital world.

News of the (MLP) World

It was an enormous week of news in the MLP space, kicked off by the Crestwood / Inergy combination announcement, but also included several other M&A announcements, growth projects and IPO news.  Combined with all the earnings releases and it was a pretty exhausting week.  Expect more of that to come in the next few weeks.

Equity

• Atlas Resource (ARP) files prospectus to sell up to $25mm in common units at-the-market ()
  • 9 banks on the cover seems like overkill here…

• QEP Midstream (QEP) files initial S-1 registration statement for planned MLP IPO to raise up to $400mm in IPO proceeds (filing)
  • Owns interests in four gathering systems and two FERC regulated pipelines
  • GP owned by QEP Resources
  • Structured as traditional MLP with IDRs

• Emerge Energy Services (EMES) prices initial public offering of 7.5mm common units at $17.00/unit, below the price range, raising $127.5mm in gross proceeds at 16.5% next 12 months distribution yield
  • First oilfield services MLP IPO structured with variable distribution
  • Backed by Insight Equity, a private equity firm

• Brookfield Infrastructure (BIP) prices offering of 5.7mm common units at $37.75/unit, raising $214.3mm in gross proceeds

• Tallgrass Energy (TEP) launches MLP IPO with midpoint IPO yield of 5.23%, expected to price May 13 and to raise $287.1mm in gross proceeds

Debt

• Targa Resources (NGLS) prices offering of $625mm of 4.25% senior notes due 2023 at par

• PVR Partners (PVR) prices upsized private placement of $400mm of 6.5% senior notes due 2021 at par (upsized from $300mm)

• Atlas Pipeline (APL) prices private placement of $400mm of 4.75% senior notes due 2021 at par

M&A / Growth Projects

• Crestwood Midstream (CMLP), Inergy (NRGY) and Inergy Midstream (NRGM) announce merger to be consummated in a series of transactions over next several months: Crestwood Holdings to acquire NRGY’s GP, fold CMLP’s IDRs and GP Interest into NRGY, and exchange all CMLP L.P. units for NRGM units and a $35mm cash payment (press release)
  • Crestwood Holdings will acquire the GP of NRGY for $80mm (mid-June)
    • Prior to closing this transaction, NRGY will distribute to its unitholders the 56.4mm of NRGM units it owns
  • Upon closing, Crestwood Holdings will contribute the IDRs and GP interest of CMLP to NRGY in exchange for NRGY units
  • In the final transaction, expected late in calendar 2013, CMLP will be merged with a subsidiary of NRGM
    • CMLP unitholders will receive 1.07 common units of NRGM per CMLP unit they own (5% premium to 20-day VWAP)
    • CMLP public unitholders will also receive a one-time cash payment at closing of approximately $35mm ($10mm paid by Crestwood Holdings and $25mm paid by NRGM)
    • CMLP Chairman, President and CEO Robert Phillips will assume the role of Chairman, President and CEO of the combined entity, NRGY/NRGM Chairman & CEO John Sherman and President Brooks Sherman to step down from day-to-day management

• Eagle Rock Energy (EROC) announces dedication of 150,000 gross acres in the Texas Panhandle through a fee-based gas gathering and processing agreement with Monarch Natural Gas (press release)
  • EROC entered into new fee-based gas gathering, processing, and purchase agreement with Monarch Natural Gas
  • Monarch has dedicated to EROC all of its gathered natural gas volume from wells within an area of more than 150,000 gross acres, located in Hemphill, Lipscomb and Ochiltree counties in the Texas Panhandle
  • Monarch will gather natural gas in the area and deliver it to EROC at central points for further gathering and processing

• MarkWest Energy (MWE) announces $245mm acquisition of midstream assets in the Anadarko Basin from Chesapeake Energy Corp. (press release)
  • MWE to acquire certain midstream assets in the Anadarko Basin from subsidiary of Chesapeake Energy Corp (CHK)
  • Assets consist of: 200 mmcf/d cryogenic gas processing plant (Buffalo Creek Plant), 22 miles of gas gathering pipeline in Hemphill County, TX and 30 miles of rights-of-way for future trunk line, An amine treating facility and 5 mile gas gathering pipeline in Washita County, OK
  • In conjunction with the acquisition, MWE executed long-term, fee-based agreements with CHK
  • MWE forecasts EBITDA of $30mm for the full-year 2014, increasing to more than $50mm by 2017 from the assets
  • MWE expects to invest $90mm over the next five years for completion and expansion of associated infrastructure

• Pioneer Southwest (PSE) announces buyout proposal from Pioneer Natural Resources Company (PXD) whereby PXD would acquire all outstanding public units of PSE for 0.2234 PXD shares per PSE unit (press release)
  • PSE announced that PXD has proposed a buyout of all publicly-held PSE common units through a stock-for-stock exchange, whereby PSE unitholders will receive 0.2234 shares of PXD for each PSE unit they own
  • Price represents an 18.1% premium from PSE’s closing price prior to the announcement

• Crosstex Energy, Inc. (XTXI) announces $25mm in a third natural gas compression and condensate stabilization facility in the Ohio River Valley

• Seadrill Partners (SDLP) announces acquisition tender rig T-15 from Seadrill Ltd for $210mm

• Sunoco Logistics (SXL) announces plans to develop a propane export/import facility backed by a long-term agreement with Shell (press release)
  • SXL has executed agreements with Shell Trading US Company to move forward with a LPG export / import facility
  • Project will be called Mariner South, with Shell as an anchor customer
  • Project will integrate SXL’s existing Nederland, TX Marine Terminal and pipeline from Mt. Belvieu, TX to Nederland with the Mt. Belvieu fractionation and storage facilities of LoneStar NGL LLC (JV of Energy Transfer and Regency Energy)
  • Mariner South will have an initial capacity of 6mm  bbls per month and will be designed to load LPG carriers with an approximate capacity of 550,000 bbls
  • Project expected to be operational by 1Q 2015

• Blueknight Energy (BKEP) announces plans to re-activate 200-mile oil pipeline from Longview to Houston, TX in JV with Silverado Pipeline

MLPs were flat on average this week on a total return basis, and down slightly on a price basis.  MLPs trailed the broader stock market, which was up 2.1% week over week.  Interest rates were up small, oil was up big, and natural gas was down big on the latest storage report.  NGLs didn’t follow oil higher, and remain at depressed levels relative to oil.  Many MLP analysts believe MLPs as a whole are destined for a serious correction.  With many an ex-date already passed, this week’s relative weakness could be the beginning of such a correction, especially as the follow-on offering machine starts rolling again in the next few weeks.

The MLP Index still leads the S&P 500, but not by as much as earlier in the year.  GPs are running away at this point, up 2.3% this week and up more than 25% on average.

Winners & Losers

EROC was the big loser this week, after dismal earnings.  Weak earnings were expected, but the results shocked to the downside, with several impossible to forecast items hitting all at once and taking adjusted EBITDA for the first quarter down to $53.6 vs. consensus EBITDA of $70.2mm.  I’ll be out with a research note on them tomorrow to give my updated take.  Upstream MLPs dominated the bottom five this week, with LRE, EVEP and BBEP joining the upstream half of EROC in the bottom five.  Barclays downgraded TCP this week, which helped land it in the bottom five.  On the plus side, refined products MLPs DKL, TLLP and BPL were among the winners.  TLLP makes its second straight appearance in the top 5 this week.  EXLP was up on good earnings and ARLP was bid up after last week’s earnings and ahead of its ex-date (tomorrow).

The 40%+ YTD total return club now has 9 MLP members.  All five of the top five YTD from last week were displaced this week by a new top five, which is extremely rare.  EXLP leads all MLPs in performance at 54.7% year to date.  EVEP is getting dangerously close to claiming the bottom spot.  Other disappointing MLPs this year include OKS and SXE.

That’s all as far as commentary goes for this week.  Busy week upcoming with more earnings reports pending.  I’ll also be a panelist at the Infocast Utica & Marcellus Infrastructure Development Summit in Pittsburgh late in the week.  Find me if you plan to be there as well.

News of the MLP World

Aside from the MLP transactions below, several constituent changes were made to Alerian MLP Indexes (to replace CPNO, which trades no more) that seemed to have varying degrees of impact on the MLPs added: TLLP to the Alerian MLP Infrastructure Index, GMLP to the Alerian MLP Index and Alerian MLP Equal Weighted Index, Crestwood added to the Alerian Natural Gas MLP Index.

Also, a few MLP GPs announced acquisitions this week, including SEMG (RRMS’s GP) buying $300mm of CHK’s midstream assets in the Mississippi (Lou Talarico’s LCT Capital advised SEMG group on the transaction, congrats to him – he’s my office neighbor).  RTK (RNF’s GP) also announced the acquisition of a wood chip processor, Fulghum Fibers.

Finally, Barron’s ran another LINE hit piece in this week’s edition.  LINE has been range bound for the last few months, oscillating between $36 and $39, and earnings were disappointing, but the allegations in the Barron’s piece were much more serious than just missing numbers.  Will be interesting to see if continued financial media onslaughts from Barron’s and Hedgeye will continue to impact LINE’s trading.

Equity

• Emergy Energy Services (EMES) launches initial public offering of 7.5mm common units in variable MLP structure at 14.0% midpoint yield (filing)
  • Variable distribution, private equity-backed oilfield services MLP

• Northern Tier Energy (NTI) prices upsized public secondary offering of 12.0mm common units at $26.28/unit, raising $362.7mm in gross proceeds to the selling unitholder (press release)
  • Selling unitholders to receive $362.7mm in gross proceeds

  • Transaction upsized from 10.0mm units originally filed

  • One day book-build, unit price rose during marketing period by 0.92%

M&A / Growth Projects

• Spectra Energy Partners (SEP) announces acquisition of 50% of Express Platte Pipeline System from Spectra Energy Corp for $823mm in total consideration (press release)
  • SEP to acquire 50% interest in Express-Platte Pipeline System for $555mm in cash, $139 in newly issued units and $129mm in assumed debt
  • Expected to close in 3Q 2013
  • Express-Platte system is 1,717 of crude oil pipeline running from Hardisty, Alberta to Wood River, Illinois with capacity of 280,000 barrels/day
  • Full year 2013 EBITDA for SEP’s portion is expected to be $72mm

• Enterprise Products (EPD) announces expansion of storage capacity at its ECHO and Bertron facilities and expansion of pipelines to directly connect ECHO with major refineries in South Texas
  • EPD plans to expand certain storage and pipeline assets, including adding 4mm barrels of crude oil storage capacity at its ECHO and Bertron facilities and approximately 55 million of 24-inch and 36-inch pipeline to directly connect ECHO with major refineries in the Southeast Texas market
  • Expansion will be completed in phases with final completion expected in 4Q 2014

• MPLX LP (MPLX) announces acquisition of additional 5% interest in MPLX Pipe Line Holdings from Marathon Petroleum Corp for $100mm
  • MPLX to acquire additional 5% interest in MPLX Pipeline Holdings LP for $100mm (funded with cash on hand)
  • Transaction will increase MPLX’s stake in MPLX Pipeline Holdings to 56%
  • MPLX Pipe Line Holdings owns a 100 percent interest in Marathon Pipe Line LLC (MPL) and Ohio River Pipe Line LLC (ORPL). MPL and ORPL own one of the largest networks of common carrier crude oil and product pipelines in the U.S. based on total volume delivered; a barge dock on the Mississippi River; and crude oil and product storage facilities
  • Acquisition represents a 9.5x multiple of next twelve months EBITDA

• Enbridge Energy (EEP) announces plans to construct 150mmcf/d processing plant in East Texas for estimated cost of $140mm
  • EEP plans to construct 150mmcf/d processing plant near Beckville in Panola County, TX

  • Expected to cost $140mm and to be in service by early 2015

Corporate Actions

• Kinder Morgan Energy (KMP) announces closing of merger with Copano Energy (CPNO)
  • CPNO is now a part of KMP and will no longer trade
• Distribution Announcements:
  • Quarter over quarter increases:
    • APU: $0.84, +5.0%
    • MPLX: $0.2725, +3.8%
    • GMLP: $0.515, +3.0%
    • SEP: $0.50125, +1.3%
    • BPL: $1.05, +1.2%
    • EXLP: $0.5175, +1.0%
    • EVEP: $0.768, +0.1%
  • Flat quarter over quarter:
    • SDLP ($0.3875), BWP ($0.5325), SXE ($0.40), EEP ($0.5435)
  • Variable:
    • ALDW ($1.48), CVRR ($1.58)