MLP Research: Accept This Justice as a Gift…

Perhaps the best exchange in the movie Godfather for explaining how the mafia worked was when Bonasera is asking Don Corleone (the elder) a favor: Bonasera: How much shall I pay you [to kill some guy] Don Corleone: Bonasera, Bonasera, what have I ever done to make you treat me so disrespectfully?  If you'd come in friendship, this scum who ruined your

Western Gas Equity IPO Hindsight

Western Gas Equity (WGP) priced its GP IPO last Thursday at $22.00 per unit, above the range of $19.00 to $21.00, and at a 3.0% IPO yield.  On its first day of trading, WGP opened trading on Friday at $27.00 and closed at $28.00 per unit, up 27.3% in its debut.  It wasn't the lowest IPO yield ever for a GP (AHGP at 2.96% in 2006), and it wasn't the

Chesapeake: When 100x Cash Flow is a Fire Sale

Chesapeake (CHK) sold out of its interests in Chesapeake Midstream Partners (CHKM) this week, in case you didn’t hear (see press release, Forbes blog, FuelFix for more info).  It happened a bit earlier than was probably originally planned, to its partner Global Infrastructure Partners (GIP) for $2.0 billion.  GIP also purchased other midstream assets in

First E&P MLP IPO in 2011: LRR Energy, L.P.

It has been almost a year since the last E&P MLP IPO, but this afternoon LRR Energy, L.P. ($LRE) priced its initial public offering of 9.4 million units at $19.00, raising $178.8 million in gross proceeds.  Since the last E&P MLP IPO ($QRE) in December of 2010, we’ve had 2 nitrogen MLP IPOs ($UAN and $RNF), a shipping MLP, a propane MLP, 3

Rentech Nitrogen Partners IPO: Feeding Fertilizer to Farmers

The 7,000,000,000 people in the world consume a lot of food, specifically course grains, which the U.S. is the largest exporter of.  According to the Rentech Nitrogen Partners, L.P. ($RNF) IPO prospectus, the U.S. is also the world’s third largest consumer of nitrogen fertilizer and historically has been the world’s largest importer of nitrogen

Cheniere to Export LNG! …in 2015

On Wednesday, Cheniere Energy, Inc ($LNG) and Cheniere Energy Partners ($CQP) announced that their subsidiary Sabine Pass Liquefaction, LLC has entered into its first liquefied natural gas (LNG) sale and purchase agreement with a subsidiary of BG Group plc, whereby BG Group will purchase LNG from Cheniere (press release). Deal specifics: 0.5 bcf per

Highest (and Lowest) Paid CEOs in MLP Sector

Yesterday, the Institute for Policy Studies released a study of the 100 highest paid CEOs among S&P 500 companies and comparing total compensation to actual taxes paid by the corporations they managed.  It turns out that 25 of those 100 companies paid their CEO more than the companies they manage paid in taxes last year.  The study was featured in the

NRGY’s Latest Bold Move: Midstream MLP IPO

Will Inergy Midstream IPO Turn NRGY Around? This morning, Inergy L.P. ($NRGY) filed its initial IPO registration form S-1 for its midstream subsidiary, Inergy Midstream, L.P. (will trade with ticker NRGM).  The filing is for up to $300mm in gross proceeds.  Morgan Stanley and Barclays Capital are joint bookrunners and the only banks listed so far on

Lingering ENP Questions

Ordinarily an article about a company I own is taboo, but this posting is not about “talking my book”, it’s about opening a dialogue about a company with many questions, and about which not many people are talking.  Encore Energy Partners (ENP) is the often overlooked E&P MLP subsidiary of Encore Acquisition Company (EAC), which was recently