MarkWest Energy offering of 5.9 million units priced at 3.2 percent discount

An offering of 5.9 million units by MarkWest Energy Partners LP (NYSE: MWE) was priced at a 3.2 percent discount to its March 12 closing price.

The natural-gas processor and distributor said on March 12 that it planned to undertake the offering to raise funds for its capital-expenditure program.

MarkWest had 95.9 million common units outstanding as of Feb. 17. (Source:  Mia Lamar, Dow Jones Newswires; 212-416-3207; mia.lamar@dowjones.com

Magellan Midstream 4th quarter profit rises 25 percent on sales growth

Fourth-quarter earnings at Magellan Midstream Partners LP (NYSE: MMP) rose 25 percent as revenue benefited from high commodity prices and growth projects.

For the year, the company projected per-unit earnings of $3.75, above recent estimates of analysts polled by Thomson Reuters for $3.66.

For the current first quarter 2012, the company forecast per-unit earnings of 98 cents, above analysts' estimates of 90 cents.

Chief Executive Michael Mears said the company expects "the favorable momentum of 2011 to continue with another record year projected for 2012 as additional expansion projects come on line."

For the fourth quarter, Magellan Midstream reported a profit of $110.3 million, or 97 cents a unit, up from $88 million, or 78 cents a unit, a year earlier. Excluding mark-to-market impacts, earnings were $1.02 a share. The company in November forecast 93 cents a share, which was slightly below analysts' views at the time.

Revenue increased 22 percent to $486.9 million. Analysts most recently projected $434 million.

Operating margin eased to 28.7 percent from 28.9 percent amid higher operating and product purchases costs.

Based on progress of expansion programs under way, the company raised its 2012 capital spending forecast to $430 million from its November view for $270 million.

Magellan also raised its 2013 estimate to $90 million to complete the projects, from $65 million as it continues to pursue expansion opportunities.

Niska Gas Storage Partners LLC, near 12-month low, yields 14.39 percent

Since Niska Gas Storage Partners LLC (NYSE: NKA) went public in May 2010, it has fallen on hard times.

Niska priced its initial public offering in 2010 of 17,500,000 common units at $20.50 per unit.

Niska bills itself as the largest independent owner and operator of natural gas storage in North America, with assets in Canada and the U.S. Niska owns and operates the AECO Hub™ in Alberta, Canada; Wild Goose in Northern California; and Salt Plains in Oklahoma.  Niska also contracts 8.5 Bcf of gas storage capacity on the Natural Gas Pipeline Company of America system. In total, Niska owns or contracts approximately 185.5 Bcf of gas storage capacity.

The company's stock remained in the $20-$22 range up to June 2011, when it began a gradual decline to a 12-month low of $8.76. It closed at $9.69 on Dec. 7, down $0.04. At that price, its $1.40 annual dividend was yielding 14.39 percent.

The decline in unit price is attributed to a steady stream of bad news including:

·         S&P says Niska Moves Haven't Been Sufficient To Maintain Cash Flow Protection Metrics

·         Weak Natural Gas Prices, Narrow Seasonal Spreads Hurt Niska's Ability To Generate Meaningful Rev   

·         S&P Sees Niska Gas Storage Partners LLC Outlook Negative

·         Niska Rating Outlook Changed To Negative From Stable 

·         Moody's Downgrades Niska's Cfr To B1 From Ba3 >NKA 

·         Niska Gas Storage Cut To Underperform From Equalweight By Barclays Capital