Energy-related IPOs were roughly a third of all significant U.S.-market initial pricings in the fourth quarter and a sixth of the total 148 for the year, with many of these being distribution-paying MLPs (master limited partnerships). One investment advisor says of continued investor interest in MLPs since tax-law changes in January, “With higher capital-gains and dividend taxes, MLPs should be marginally more attractive, given they defer taxes.”

Among those announcing MLP plans recently, but not yet filed, is QEP Resources Inc., which is making Bakken oil its headliner this year after a $226-million purchase there from Unit Corp. The MLP will take in QEP midstream assets, and proceeds are to help fund its oily growth. Tudor, Pickering, Holt & Co. Securities Inc. analysts support the plan: “We believe providing a mechanism for future dropdowns to competitively fund oily growth is more important than immediate cash in the door.”

Meanwhile, refiner Phillips 66, created by its spinoff from ConocoPhillips last April, plans to IPO some of its midstream assets into an MLP this year.

And, Oklahoma City-based New Source Energy Partners LP is to IPO with its starter, nonoperated interests in the Hunton formation over 31,554 net acres in Oklahoma. Its 14.2 million barrels of oil equivalent (BOE) of proved reserves—58% proved developed and 76% oil and gas liquids—made 3,169 BOE a day, net, in the first nine months of 2012 for a 12.3-year reserve life.

Among recent MLP pricings, Austin, Texas-based USA Compression Partners LP began trading at press time, with 889,000 horsepower from more than 1,100 units in U.S. Central and Northeast shale plays.

In the fourth quarter, MLP pricings included the IPOs of

  • The Woodlands, Texas-based Western Gas Equity Partners LP, the general partner of Anadarko Petroleum Corp.’s Western Gas Partners LP that owns midstream assets primarily in the Rockies.
  • Dallas-based Alon USA Partners LP, formed by Alon USA Energy Inc. to own and operate its 70,000-barrel-a-day Big Spring, Texas, refinery.
  • Brentwood, Tennessee-based refined-products-gatherer and -marketer Delek Logistics Partners LP, which is a spinoff of Delek US Holdings Inc., the operator of refineries in Texas, and El Dorado, Arkansas.
  • Dallas-based Southcross Energy Partners LP, which owns gas gathering and processing, intrastate pipelines and a fractionator on the Gulf Coast.
  • MPLX LP, which received oil- and product-pipeline systems and storage assets in the Midwest and on the Gulf Coast from its Findlay, Ohio-based parent, refiner Marathon Petroleum Corp.
  • and, Allentown, Pennsylvania-based Lehigh Gas Partners LP, which distributes fuel to U.S. Northeast retailers.

MLPs priced earlier in 2012 include:

  • Dallas-based Summit Midstream Partners LP, which has infrastructure in the Piceance and Fort Worth basins.
  • Houston-based Susser Petroleum Partners LP, which distributes fuel to fueling stations, primarily in Texas.
  • Proppant miner and distributor High-Crush Partners LP, based in Houston.
  • Northern Tier Energy LP, which operates refining, retail and pipelines in the Mid-west U.S. PADD II region.
  • EQT Midstream Partners LP, formed with gas-gathering and -transmission assets in Appalachia from its parent, Pittsburgh-based EQT Corp.
  • and, Houston-based Petrologistics LP, whose world’s largest propane-dehydrogenation facility in Houston is within 50 miles of half of all U.S. petrochemical propylene consumption.

IPOs filed in 2012, not priced, include:

  • Sugar Land, Texas-based CVR Refining LP, which owns refineries in Kansas and Oklahoma.
  • Illinois-based Suncoke Energy Partners LP, which will acquire a 65% interest in Haverhill and Middletown, Ohio, facilities that make 1.7 million tons of coke per year.
  • and, Connecticut-based Maxum Energy Logistics Partners LP, a distributor of refined petroleum products to E&P and coal-mining operators.

Brad Olsen, director, midstream research, for Tudor Pickering, said in early January, “Despite mediocre MLP performance in 2012…the MLP IPO market was very receptive to new issues. Almost all IPOs performed strongly in their respective first days on the market, with 10 of 13 up more than 5% on Day 1 and nine of 13 IPOs up 10% or more…since their respective IPOs.”

For more commentary from Nissa, see her blog at http://blogs.oilandgasinvestor.com? .