Master

The steady earnings master limited partnerships (MLPs) have traditionally made by acquiring oil and natural gas pipeline and midstream assets will continue to be the backbone of the tax-advantaged entities, but more organic and commodity-driven partnerships are expected going forward, executives predicted last week.

The steady earnings from oil and natural gas pipeline and midstream assets will continue to be the backbone of energy-based master limited partnerships (MLP), but expect more organic, risker growth and commodity-driven partnerships in the future, an RBC Capital Markets energy analyst said Thursday.

Master limited partnerships (MLPs) in the energy sector have been growing at a rate of about 30% a year, and some might expect the pace to soon begin to flatten out or even decline. But don’t count on it. If anything, MLPs are poised to not only continue to multiply and expand within the energy sector, but they are also developing in what once was an unlikely arena: the exploration and production (E&P) sector.

With master limited partnerships (MLPs) in the energy sector growing at a rate of about 30% a year, some might expect the pace would begin to flatten out or even decline. But don’t count on it. If anything, MLPs are poised to not only continue to multiply and expand within the energy sector but they are also developing in what once was an unlikely arena: the exploration and production (E&P) sector.

Temporary business interruptions, project delays and damage from weather-related events failed to deter U.S. energy master limited partnerships from having a strong year, according to a report issued Thursday by Standard & Poor’s Ratings Services (S&P).

Duke Energy Field Services (DEFS) announced Friday that DCP Midstream Partners LP, a midstream energy master limited partnership (MLP) formed by DEFS, filed a Registration Statement with the Securities and Exchange Commission for an initial public offering. The registration statement proposes to register 8,000,000 common units, along with up to an additional 1,200,000 common units that may be purchased at the option of the underwriters. The lead book-running managers of the offering will be Lehman Brothers Inc. and Citigroup Global Markets Inc.

Harbert Distressed Investment Master Fund Ltd., the largest stockholder of NorthWestern Corp., has hired Lehman Brothers and the law firm of Milbank, Tweed, Hadley & McCloy LLP to advise it on the feasibility of a proposal by a coalition of municipal entities called Montana Public Power Inc. (MPPI) to buy NorthWestern.

In a review of its corporate strategy, Western Gas Resources said its board has decided not to spin off its midstream assets into a master limited partnership. After consulting with independent financial advisors, Western determined that a spin-off or sale would not benefit stockholders at this time. The company also announced significant progress in its Powder River Basin drilling program and said it plans to bring its expertise in unconventional gas exploration and production to the Western Canadian Sedimentary Basin (WCSB).

Duke Energy and ConocoPhillips have named Michael J. Bradley to lead their efforts to form a new energy master limited partnership (MLP) out of Duke Energy Field Services (DEFS), which will be the general partner. Jim Mogg, chief development officer at Duke Energy, will serve as chairman of the new venture. Duke and ConocoPhillips also plan to adjust their ownership shares of DEFS later this year to 50-50 from its current 70-30 split, in which Duke owns the larger stake. Bradley, 50, was formerly group vice president of gathering and processing of DEFS.