Duncan Energy Partners LP, formed to own interests in some of Enterprise Products Partners LP’s Gulf Coast midstream assets, will launch its initial public offering (IPO) next week (see Daily GPI, Nov. 3, 2006). About 13.0-14.95 million common units will be offered, initially priced at $19-21/unit.

When it debuts, the spin-off will own 66% of Enterprise’s equity interests in the Acadian Gas, Sabine Propylene and Lou-Tex Propylene pipeline systems, the South Texas Natural Gas Liquids (NGL) pipeline system and the Mont Belvieu NGL storage facilities. Together, these assets will include:

Net proceeds from the IPO will be used to distribute about $212.3 million to Enterprise. In addition, the new company will borrow $200 million under its $300 million credit agreement and distribute $198.9 million to Enterprise in additional consideration for the assets.

The limited partnership will be listed on the New York Stock Exchange under the ticker symbol “DEP.” Lehman Brothers and UBS Investment Bank are serving as representatives and joint book-running managers in the IPO. Citigroup, Goldman, Sachs & Co., Morgan Stanley, Wachovia Securities, A.G. Edwards, J.P. Morgan Securities, Merrill Lynch, Raymond James, RBC Capital Markets, Sanders Morris Harris Inc., Scotia Capital, Natexis Bleichroeder Inc. and Banc of America Securities LLC are serving as co-managers in the offering.

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