Twitter’s going-public plans might be dominating the mainstream media landscape, but initial public offering (IPO) fever is striking the world of midstream too.
Devon Midstream Partners LP had initially mulled hopping on the IPO bandwagon, but jumped off soon after. Devon Midstream had filed plans with the U.S. Securities and Exchange Commission (SEC) to raise up to $400 million through an IPO. However, it changed its plans in mid-October, when it announced it would instead form a merger with Crosstex Energy Inc. Crosstex and Devon will combine their midstream assets to form a new, yet-to-be-named company.
Cheniere Energy Partners LP Holdings LLC, a subsidiary of Cheniere Energy Inc., submitted an S-1 filing with the SEC as well. Cheniere Energy Partners could raise $690 million through its IPO. The two filings follow QEP Midstream Partners LP’s successful IPO in August. QEP Midstream was set to raise $420 million by going public.
Meanwhile through a major mid-October transaction, Regency Energy Partners LP acquired PVR Partners LP for $5.6 billion. The unit-for-unit transaction, in addition to a one-time cash payment to PVR unitholders, includes the assumption of $1.8 billion in net debt.
Regency says the transaction will help it become a leading gas gatherer and processer in plays in the Appalachia, West Texas, South Texas, the Midcontinent and north Louisiana.
“We view this transaction as a merger creating a larger, more diversified operating platform that will be highly attractive to investors, customers, creditors and employees,” said William H. Shea Jr., president and chief executive of PVR. “We believe that the size and scope of the combined enterprise will be highly beneficial to our unitholders, offering added diversification and critical mass, which will provide the needed financial flexibility to fully execute and benefit from the significant portfolio of organic growth projects we have developed over the past three years, especially in our eastern midstream operations.”
Regency says its name will remain the same after the deal closes in first-quarter 2014.
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