After raising $2 billion in our most recent tally, master limited partnerships (MLPs) returned for an encore performance that raised a still stout, albeit smaller, $850 million from four transactions.
Atlas Pipeline Partners closed an offering of 11.845 million common units, including the overallotment option, that were priced at $34 per unit and raised net proceeds of $396.6 million. Atlas also priced an offering of $400 million aggregate principal amount of 4.75% senior notes, due 2021, priced at par.
Proceeds from the MLP offering are to be used to fund a portion of Atlas' purchase of TEAK Midstream, a private midstream operator with assets in the Eagle Ford. Assets being acquired by Atlas include: 200 million cubic feet per day (MMcf/d) of cryogenic gas processing capacity; a second 200 MMcf/d cryogenic facility to be in service in the first quarter of 2014; 265 miles of gathering and residue lines with 750 MMcf/d of throughput capacity; and 275 miles of low-pressure gathering lines.
In the downstream MLP sector, Northern Tier Energy LP priced a public offering of 12 million common units held by Northern Tier Holdings LLC at $26.68 per unit for gross proceeds of $315.4 million. The partnership will not receive any proceeds from the sale.
In the marine sector, Teekay Offshore Partners priced a public offering of 6 million 7.25% Series A cumulative preferred units, representing limited partnership interests, at $25 per unit. Gross proceeds of $150 million are expected to be used for general partnership purposes, including funding of newbuild installments and the acquisition of vessels that Teekay Corp. may offer to the partnership.
In equity offerings, Rosetta Resources raised gross proceeds of $297.5 million through an offering of seven million shares at $42.50 per share. Proceeds are to be used to fund a portion of its purchase of oil and natural gas assets in the Permian Basin from Comstock Resources. Rosetta also announced the pricing of $700 million in aggregate principal amount of 5.625% senior notes, due 2021, priced at par.
Elevation Resources LLC, based in Midland, Texas, announced $400 million of equity financing from New York-based private-equity sponsor, Pine Brook. Elevation's focus is on acquisition, leasing, exploration and development activities in the Permian Basin.
—Chris Sheehan, CFA
Recommended Reading
TGS Starts Up Multiclient Wind, Metaocean North Sea Campaign
2024-05-07 - TGS is utilizing two laser imaging and ranging buoys to receive detailed wind measurements and metaocean data, with the goal of supporting decision-making in wind lease rounds in the German Bright.
Spate of New Contracts Boosts TechnipFMC's Subsea Profits
2024-04-30 - TechnipFMC's operational profits are growing as the company heightened its focus on “quality” subsea orders, which earned $2.4 billion for the first quarter.
Message in a Bottle: Tracing Production from Zone to Wellhead
2024-04-30 - New tracers by RESMAN Energy Technology enable measurement while a well is still producing.
Defeating the ‘Four Horsemen’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production—and keep the cash flowing.
Tech Trends: AI Increasing Data Center Demand for Energy
2024-04-16 - In this month’s Tech Trends, new technologies equipped with artificial intelligence take the forefront, as they assist with safety and seismic fault detection. Also, independent contractor Stena Drilling begins upgrades for their Evolution drillship.