Posts for Ticker ‘EPB’

Secondary Offerings Still Coming Strong (MAIN, OEH, EPB, ENMD, TK, NDAQ, NLST, ARIA)

The end of 2009 was marked by many companies selling stock via public secondary offerings.  2010 has not seen the floodgates open wide, but the secondary offerings are coming.  We have offerings sold or filed to sell from Main Street Capital Corporation (NASDAQ: MAIN), Orient-Express Hotels Ltd. (NYSE: OEH), El Paso Pipeline Partners, L.P. (NYSE: EPB), EntreMed, Inc. (NASDAQ: ENMD), Teekay Corporation (NYSE: TK), NASDAQ OMX Group, Inc. (NASDAQ: NDAQ), Netlist Inc. (NASDAQ: NLST), and ARIAD Pharmaceuticals, Inc. (NASDAQ: ARIA).

This is unfortunately not even the entire list.  We have compiled the data on the specifics of each and shown how each offering compares to the size of each company.
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Posted on: January 13, 2010 – 10:05 am in Bonds, Secondary Offering, , , , , , , ,

Pipeline Partnerships Face Credit Crunch (EPB, EPD, KMP)

Tx00338coilwellgusherodessatexasposWe’ve noted before that pipeline master limited partnerships must grow if they are to attract investors. For nearly all MLPs, that means access to credit at low interest rates. Does that sound like today’s credit market?

Rigzone.com carried a Dow Jones Newswires story that tight credidt is making it difficult to raise money for new pipeline construction or acquisitions. Even though natural gas prices are low, volumes flowing through the pipelines remain high. That means that revenues to the pipeline companies remains high or even increases because MLP revenue is not tied to the commodity price.

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Posted on: December 31, 2008 – 3:08 pm in Oil & Gas, , ,

Goldman Sachs Hits Oil Sector (BHI, EP, XOM, KMP, MMP, EPB, MRO, MUR, KGS, SLB)

Goldman_sachs_logoOil_well_logo_2_2In a perhaps late research call in the oilpatch, Goldman Sachs has downgraded the exploration & production sector to Neutral from attractive and downgraded the oil services sector to Neutral from Attractive.  Interestingly enough. in all of the downgrades for these sub-sectors there are actually some upgrades in the group.  Below are some of these top calls in the sector from Goldman Sachs:

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Posted on: October 13, 2008 – 6:00 am in Analyst Calls, Oil & Gas, , , , , , , , , ,

Anadarko Scores With Western Gas IPO (APC, WES, EP, EPB)

In June 2006, Anadarko Petroleum (NYSE:APC) bought both Western Gas Resources and Kerr-McGee for a total of more than $23 billion. Last night, Anadarko announced that it had priced an IPO of 18.75 million shares for Western Gas Partners, LP (NYSE: WES) at $16.50 per common unit. APC also granted underwriters an overallotment of 2.82 million shares. Book-runners include UBS, Citi, Credit Suisse, and Morgan Stanley, with a host of other institutions getting into the act as well.  Here were details from our coverage of the filing.

The new company’s assets are a natural gas treatment plant in Texas, and gas gathering and pipeline systems in the Rocky Mountains and several Midwestern states. In 2007, these assets produced $116 million in revenue and $24 million in earnings.

If the overallotment is exercised, the limited partners will own about 40% of Western Gas Partners, LP, and Anadarko will own the rest, including the general partner interest. According to the filing, Anadarko receives the 2% general partner interest plus incentive distributions that could rise to 50% of available cash after the distributions reach $0.45/common unit. WES will return virtually all the proceeds (about $350 million) to Anadarko, which will use the money to repay a portion of Anadarko’s recent $2.2 billion borrowing from, surprise, the underwriters.

Anadarko first filed with the SEC for this IPO in April 2007, and it’s taken this long to get to the IPO. The company reported good results for the first quarter of 2008, and, according to Forbes, Moody’s recently raised its outlook to ’stable’ from ‘negative’ on APC’s ‘Baa3′ senior unsecured long-term debt. Including the $2.2 billion, APC’s total long-term debt and liabilities were about $26.6 billion at the end of the first quarter.

Spinning off midstream assets is nothing new for E&P companies. El Paso (NYSE: EP) hived off El Paso Pipeline Partners L.P. (NYSE: EPB) in November 2007 for about $540 million and EPB’s stock price has risen about 11% since then. Anadarko and Western Gas Partners, LP should be happy with similar performance — not great, but good enough to keep the debt rating companies happy.

Oddly enough, Carl Icahn was a huge owner of Anadarko as of the last filing dates.

You can join our open email distribution list to keep up with other mergers, IPO’s, spin-offs, and other specialty financings.

Paul Ausick
May 9, 2008

Posted on: May 9, 2008 – 8:45 am in IPOs, Oil & Gas, , , ,

IPO FILING: El Paso Pipeline Partners, L.P. (EP, EPB, BSR)

After the close Friday, while no one was there to see it, we had a fairly interesting spin-off announcement.  El Paso Corp. (NYSE:EP) filed with the SEC to make its El Paso Pipeline Partners, L.P. a seperate public company.  This is another one of the famed MLP spin-offs that have been so popular over the last few years with oil companies and investors.

MLP operators and recent spin-offs have seen a bit of a breather and selling in the recent weeks, but there are still many such entities out there that can be and will likely be unlocked in the near future.  You can track the overall performance of the group by looking at a key ETF that has been public a very short time: BEAR STEARNS ALERIAN ETF (NYSE:BSR), which is down about 10% from its post-launch highs. The company has filed up to $603,750,000 for registration purposes of 25 million units and the underlying El Paso Corp. has a current market cap of $11.1 Billion.  So this does offer some value to be unlocked, but on the surface it may only be 5%.  This will have the proposed ticker of "EPB" on the NYSE.

Here are the underwiters on the filing: Lehman Brothers, Citi, Goldman Sachs & Co., UBS Investment Bank, and Tudor Pickering.  We will follow up with what percentages go where in this company versus the underlying MLP and ownership percentages in a future story ahead of the actual IPO.  YOU CAN SEE A SPECIAL "ABOUT US COPY" FROM THE PROSPECTUS ON PAGE TWO HERE BELOW IF YOU WISH.

Jon C. Ogg
September 1, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he produces 24/7 Wall St. LLC’s Special Situation Investing Newsletter and he does not own securities in the companies he covers.

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Posted on: September 1, 2007 – 3:42 pm in ETF, IPOs, Oil & Gas, , , , ,