Shell Midstream Partners (SHLX – proposed) is said to be on the “most wanted” list of a lot of people. The company is a Houston-based limited partnership recently formed by Shell to own, operate, develop and acquire pipelines and other midstream assets. The company’s initial assets consist of interests in entities that own crude oil and refined products pipelines that serve as key infrastructure to transport onshore and offshore crude oil production to Gulf Coast refining markets and deliver refined products from those markets to major demand centers. The partnership plans to pay a quarterly cash distribution amounting to 65 cents annually to yield 3.25 percent at the mid-point of its offering price.
The deal is expected to be priced Tuesday evening to trade Wednesday morning.
Lucky Streak
Catching lightning were Dominion Midstream Partners (DM) on Oct. 15 and CONE Midstream Partners LP (CNNX) on Sept. 25. Missing out was JP Energy Partners LP (JPEP) on Oct. 2.
Dominion Midstream Partners is a limited partnership formed to own all of the outstanding preferred equity interests in Dominion Cove Point LNG. This entity owns liquefied natural gas import, storage, regasification and transportation assets.
The partnership plans to pay a quarterly cash distribution amounting to 70 cents annually. The company offered 17.5 million common units at $21 each. The IPO started trading at $22.50 on Oct. 16 and closed on Friday, Oct. 24, at $27.90, UP 32.9 percent from its initial public offering price.
CONE Midstream Partners is a fee-based, growth-oriented master limited partnership recently formed by CONSOL Energy and Noble Energy to own, operate, develop and acquire natural gas gathering and other midstream energy assets to service its sponsors’ growing production in the Marcellus Shale in Pennsylvania and West Virginia. CONE’s initial assets include natural gas gathering pipelines and compression and dehydration facilities, as well as condensate gathering, collection, separation and stabilization facilities. The partnership plans to pay a quarterly cash distribution amounting to 85 cents annually. The company offered 17.5 million common units at $22 each. The IPO started trading at $28.50 on Sept. 26. It closed on Friday, Oct. 24, at $28.40, UP 29.5 percent from its IPO price.
Short Circuit
In the energy sector, one limited partnership’s IPO did not light up the sky.
JP Energy Partners is a growth-oriented limited partnership formed to own, operate, develop and acquire a diversified portfolio of midstream energy assets. The company’s operations consist of four business segments: (1) crude oil pipelines and storage, (2) crude oil supply and logistics, (3) refined products terminals and storage and (4) NGL (natural gas liquids) distribution and sales. Together its businesses provide midstream infrastructure solutions for the growing supply of crude oil, refined products and NGLs in the United States. The partnership plans to pay a dividend of $1.30 per common unit. The company offered 13.8 million common units at $20 each. On Oct. 2, the IPO started trading at $20.50. It closed on Friday, Oct. 24, at $16.61, DOWN 17 percent from its IPO price.
Boots and Beauty
This week has six deals looking to raise $1 billion, but don’t get too excited. The Shell Midstream deal amounts to $750 million; two are carryovers from past weeks, and one is a “blank check” offering. Here are the other two:
Boot Barn Holdings (BOOT – proposed) is an Irvine, California-based lifestyle retail chain offering Western and work-related footwear, apparel and accessories. The company has about 155 stores in 24 states. Bankers expect to price 5 million shares at $14 to $16 each to raise $75 million.
Sientra (SIEN – proposed) is a Santa Barbara, California-based provider of breast implants and breast tissue expanders sold exclusively to board-certified and board-admissible plastic surgeons. Bankers expect to price 5 million shares at $14 to $16 each to raise $74 million.
Looking into the week of Nov. 3, 2014, the calendar has four deals with bankers planning to raise about $315 million. But more names could pop onto the calendar by the time that Monday rolls around.
Stay tuned.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.