Two noteworthy deals in recent weeks include a $1-billion-plus secondary offering by deepwater explorer Cobalt International Energy, and an initial public offering (IPO) by Tallgrass Energy Partners LP, based in Overland Park, Kansas. The latter MLP priced 13.05 million common units at $21.50 per unit, raising about $280 million. It holds the Rocky Mountain pipeline assets divested as a result of the Kinder Morgan- El Paso Corp. merger last year.
Cobalt, based in Houston, priced its underwritten offering of 50 million secondary shares at $26.80 per share. The deepwater explorer did not receive any proceeds from the sale. The shares were offered by affiliates of its investors: First Reserve Corp.; Goldman, Sachs & Co.; Riverstone Holdings LLC, the Carlyle Group and Kern Partners LLC.
The MLP sector was quite busy once again. TC Pipelines LP, of Houston, raised $388 million by selling 8.85 million common units at an offering price of $43.85 per unit. Net proceeds will be used to partially fund the previously announced acquisition of an additional 45% in each of Gas Transmission Northwest LLC and Bison Pipeline LLC from TransCanada Corp.
In other MLP offerings, Western Gas Partners, based in The Woodlands, Texas, priced an offering of 7.015 million common units at $61.18 per, raising $429 million, while Boardwalk Pipeline Partners expects to raise net proceeds of $327 million through the sale of 11 million of common units at $30.12 per unit.
CVR Refining LP, based in Sugarland, Texas, closed its offering of 12 million common units representing limited partnership interests at $30.75 per unit, raising $369 million. It will use net proceeds to redeem 12 million common units from CVR Refining Holdings, reducing the latter’s limited partnership interest in CVR Refining LP to 73% from 81% previously.
Vanguard Natural Resources LLC, based in Houston, priced an offering of 7 million common units at $28.35 per unit, raising net proceeds of $190.9 million.
Two E&Ps with Permian Basin interests tapped the market in follow-on equity offerings. Diamond Back Energy Inc., Midland, Texas, raised net proceeds of $144.4 million by selling 5.175 million common shares at $29.25. Resolute Energy Corp., of Denver, netted about $101.8 million by offering 13.25 million common shares. Certain selling stockholders also closed on an offering of roughly an additional 5.4 million shares, including 2.4 million sold pursuant to the overallotment option.
Recommended Reading
MethaneSAT: EDF’s Eye in the Sky Targets E&P Emissions
2024-03-07 - The Environmental Defense Fund and Harvard University recently launched MethaneSAT, a satellite tracking methane emissions. The project’s primary target: oil and gas operators.
Keeping it Tight: Diversified Energy Clamps Down on Methane Emissions
2024-04-24 - Diversified Energy wants to educate on emission reduction successes while debunking junk science.
Qnergy Tackles Methane Venting Emissions
2024-03-13 - Pneumatic controllers, powered by natural gas, account for a large part of the oil and gas industry’s methane emissions. Compressed air can change that, experts say.
SEC Adopts Climate Disclosure Rules in 3-2 Vote
2024-03-06 - The regulation requires companies to disclose Scope 1 and 2 emissions, weather-related risks and other climate-related data that could have a material business impact.