PennTex Midstream Partners L.P. has filed its S-1 form with the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO). No terms were given for the offering, but the filing is for up to $150 million. The company plans to list on the New York Stock Exchange under the symbol PTXP.
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The underwriters for the offering are Citigroup, Barclays, RBC and Tudor, Pickering, Holt and Co.
PennTex Midstream Partners is a master limited partnership (MLP) focused on owning, operating, acquiring and developing midstream energy infrastructure assets, with an initial focus in northern Louisiana. The parent company is PennTex Development, which was formed by NGP in January 2014. The company intends to leverage its relationships with NGP and its parent to grow and serve attractive oil and natural gas basins in North America.
The initial assets will be supported by 15-year, fee-based commercial agreements, with Memorial Resource. Memorial is an NGP-affiliated independent natural gas and oil company focused on the development of the overpressured Cotton Valley formation in northern Louisiana.
The initial assets will include: the Lincoln Parish Plant, PennTex Gathering pipeline, PennTex gas pipeline, and PennTex NGL Pipeline.
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PennTex Midstream Partners is managed directly by PennTex Midstream GP LLC who is acting as the general partner. PennTex Development and MRD WHR LA Midstream LLC act will act as limited partners as well as anyone from the general public who buys in.
The company plans to put the proceeds towards the quarterly distributions to the unitholders with respect to the fourth quarter of 2014 and the first quarter of 2015. The funds will also be put towards the capital expenditures that PennTex Midstream Partners expects to incur from November 2014 through the completion of its assets.
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