News of new MLPs came to an abrupt halt in early August as capital markets, particularly debt markets, assessed a new investment-yield regime, as interest rates rose despite Fed efforts to push its benchmark to a 5.25% target. Word was investment-bankers and other capital arrangers have gone on holiday through Labor Day.

Six of the six upstream MLPs' unit prices were hit 5% to 30% in early August and most had returned to or near their month-before level at press time. (For more on this, see "NewsWell" in this issue.)

Not all producers aim to get into the upstream MLP space, even though they have assets that are MLP-able. For example, Chesapeake Energy Corp., instead of forming a mini-MLP, is offering some Appalachian assets for bid by by MLPs. Word is Chesapeake will consider "leasing" the assets.

Many IPO plans for upstream MLPs have been filed with the SEC and not yet priced, including those for:

• Exco Resources Inc., raising some $1.5 billion and involving mature producing properties in Appalachia, East Texas/North Louisiana, Midcontinent and the Permian Basin.

• Pioneer Southwest Energy Partners LP, raising some $250 million for Pioneer Natural Resources and involving 25 million proved barrels equivalent in the Permian Basin. (For more on why MLPs are Permian-philes, see "Permanent Permian" in this issue.)

• Quest Energy Partners LP, raising some $210 million for Quest Resource Corp. and involving some 1,700 gross coalbed-methane wells in Kansas and Oklahoma in the Cherokee Basin.

• Abraxas Energy Partners LP, created by Abraxas Petroleum Corp. for $100 million from private investors. It holds Permian and South Texas properties.

• Venoco Inc., holding some onshore and offshore California and onshore Texas assets.

• Encore Energy Partners LP, raising some $250 million for Encore Acquisition Co. and holding 22 million proved barrels equivalent in the Elk (Wyoming and Montana) and Permian basins.

• Vinland Energy Eastern LLC by Vanguard Natural Resources LLC, raising roughly $150 million and holding southern Appalachian properties with 66 billion proved cubic feet equivalent.

Announcing plans to form an upstream MLP but not filing with the SEC yet are:

• Plains Exploration & Production Co. of some 75% of its assets post its Pogo Producing Co. deal.

• XTO Energy Inc. of more than $500 million of properties, including some from Dominion Resources.

• Petrohawk Energy Corp. of its HK Energy Partners LP, raising some $150- to $225 million and holding long-life Permian and Arkoma properties.

• Pioneer Natural Resources of its Raton Basin coalbed-methane assets in the southern Rockies.

Some producers are also rolling their midstream assets into MLPs.

• Quicksilver Resources Inc. priced its Quicksilver Gas Services LP in early August, holding Barnett shale gathering lines and related facilities.

• Devon Energy Corp. plans an MLP of a minority interest in its U.S. onshore marketing and midstream business.

• Williams Cos. Inc. plans one to own an interest in its 3,900-mile, bi-directional Northwest Pipeline.

Other midstream MLPs under way are:

• Tetra Technologies Inc.'s roll-out of most of the assets of subsidiary Compressco Inc.

• OGE Enogex Partners LP, which will control OGE Energy Corp.'s gas-pipeline subsidiary, Enogex Inc.

2007 midstream MLP offerings that are closed include that of SemGroup Energy Partners LP by SemGroup Holdings LP, holding oil-transportation and -storage assets in the Midcontinent; and Spectra Energy Partners LP, a roll-out by Spectra Energy Corp. that holds gas-transportation and -storage assets.

Investment funds have been formed to target the MLP space. Tortoise Capital Advisors LLC has created Tortoise Gas and Oil Corp. with $100 million to invest primarily for upstream MLPs. Meanwhile, an IPO of MLP Strategy Income Fund Inc. is being offered by a Merrill Lynch & Co. subsidiary.

Despite the dominance of MLP offerings, several traditional E&P-company IPOs have been launched this year or are under way. Trading are Midland-based Concho Resources Inc., Pennsylvania-based Rex Energy Corp., Oklahoma-based Continental Resources Inc. and Wyoming-based Pinnacle Gas Resources Inc.

Under way are IPOs for Fort Worth-based Approach Resources Inc. and Oklahoma City-based SandRidge Energy Inc.

Oilfield-service IPOs that have been completed this year are those of Houston-based Vantage Energy Services Inc. and Lafayette-based Superior Offshore International Inc. Under way is an IPO for Oklahoma-based Stallion Oilfield Services Inc.

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