Appalachian pure-play Rice Energy Inc. has outlined terms for the initial public offering (IPO) of a master limited partnership (MLP) for its midstream assets in southwestern Pennsylvania that aims to raise more than $600 million.
Rice filed a registration statement with the U.S. Securities and Exchange Commission in November after announcing plans to take some of its midstream assets public in August (see Shale Daily, Nov. 7; Aug. 11). The company said Monday that it would offer 25 million common units in Rice Midstream Partners LP at a price of $19-21 each. It would also grant underwriters a 30-day option to purchase an additional 3,750,000 common units.
Rice Midstream has been approved to list its common units on the New York Stock Exchange under the symbol "RMP." The units being offered represent a 43.5% interest in the MLP, or 50% if the underwriters exercise their purchase option. Rice Energy and its affiliates would own the remaining interest.
All of Rice Energy's acreage is located in Belmont County, OH, and Washington and Greene counties, PA. According to the registration statement, Rice Midstream's assets would consist of 3.2 MMDth/d of dry gas gathering and compression capacity in southwest Pennsylvania, where the majority of Rice Energy's wells have been drilled.
The company did not say when it would launch the IPO, but it has previously said it expects the offering to be completed by early next year.