Energy Business

MLP Watch: Columbia Pipeline Partners Files for IPO

Columbia Pipeline Partners L.P. has filed with the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO). No terms were given for the offering, but it can be potentially valued up to $800 million in common units. The company will list on the New York Stock Exchange under the symbol CPPL. The underwriters for the IPO were listed only as Barclays and Citigroup.

The NiSource Inc. (NYSE: NI) board of directors approved in principle the spin-off of NiSource’s natural gas pipeline and related businesses. The spin-off is expected to take place in the second half of 2015, but it will be subject to satisfaction of various conditions.

If the spin-off goes through, HoldCo will continue to indirectly own the general partner, NiSource, 85.4% of the limited partner interests in Columbia OpCo and the limited partnership interests that are not owned by the public.

Columbia Pipeline Partners is a master limited partnership (MLP) formed by NiSource to own, operate and develop a portfolio of pipelines, storage and related midstream assets. The business and operations will be conducted through Columbia OpCo.

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Columbia OpCo owns substantially all of the natural gas transmission and storage assets of Columbia Energy Group. These assets include approximately 15,000 miles of strategically located interstate pipelines from New York to the Gulf of Mexico and one of the nation’s largest underground natural gas storage systems, with approximately 300 MMDth of working gas capacity.

For the year ended December 2013, 93% of Columbia OpCo’s revenue, excluding revenues generated from cost recovery, was generated under firm revenue contracts. At the same time, these contracts had a weighted average remaining contract life of 5.2 years.

Columbia Pipeline Partners will be managed and operated by the board of directors and executive officers of CPP GP LLC, a wholly owned subsidiary of Columbia Energy Group.