Rose Rock Midstream plans $140 million IPO

NEW YORK - Rose Rock Midstream (NYSE Amex: RRMS) plans to raise $140 million in an initial public offering as it splits from the company that owns its general partner.

The Tulsa, Okla., oil and gas company joins a growing list of energy IPOs this year.

Memorial Production Partners L.P., a Houston natural gas producer, is planning a $200 million offering. Both companies are expected to begin trading immediately.

Rose Rock is offering seven million common units at between $19 and $21 each. It expects net proceeds of $127.3 million, after deducting expenses, and will use the cash to pay SemGroup in return for Rose Rock's assets. SemGroup also owns the company's general partner.

The company plans to pay investors a quarterly distribution of 36.25 cents per unit.

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

Lawmakers consider ways to expedite Keystone XL pipeline construction

WASHINGTON, D.C. - The House Energy and Commerce Committee held a hearing on the Keystone XL Pipeline on Dec. 2.

Lawmakers reviewed alternatives to expedite construction approval. Labor union and oil production company representatives testified.

The 1,700-mile, $7-billion pipeline would carry oil from Canada to refineries in Texas.

Jane Kleeb, executive director of the anti-pipeline group Bold Nebraska, testified along with Alex Pourbaix, president of the TransCanada pipeline company.

A group of Senate Republicans recently unveiled legislation to move forward on the Keystone XL Pipeline project. Sen. Dick Lugar (R-Ind.), who co-authored the bill with Sen. John Hoeven (R-N.D.), said on Nov. 30 that it was time to "pursue domestic energy alternatives and reduce the need for foreign oil."

The plan would require a State Department permit to allow the pipeline project to move ahead within 60 days, unless President Obama determines that doing so not in the national interest.

Obama said he would veto any legislation aimed at expediting the Keystone XL approval.

Atlas Pipeline Partners, L.P. announces long-term agreement with XTO Energy

PHILADELPHIA, Pa. - Atlas Pipeline Partners, L.P. announced on Dec. 1 that it has entered into a long-term, fee-based agreement with XTO Energy Inc., a subsidiary of ExxonMobil, to provide natural gas gathering and processing services for up to an incremental 60 million cubic feet per day (mmcfd) from the Woodford Shale region of Oklahoma to its Velma processing facility in Velma, Okla.

Under the agreement, APL will provide gathering and processing services for XTO production in the liquids-rich area within the Woodford Shale. The agreement also supports APL's previously announced expansion of its Velma system.

"We are pleased to enter into this long-term agreement with XTO with respect to production in the area around our Velma facility. Activities in the area have increased over the past year and we are adding capacity to address the needs of our producer customers. We are excited to work with them on their development plans and are pleased to be adding de-risked cash flows to the business through this arrangement," stated Eugene N. Dubay, chief executive officer of APL.

"This agreement will help provide XTO Energy the necessary infrastructure to operate effectively in the Woodford Shale and access markets beyond the region," said Terry Schultz, senior vice president of marketing, XTO Energy.

Tortoise Pipeline & Energy Fund announces initial distribution

LEAWOOD, Kan. - Tortoise Pipeline & Energy Fund, Inc. (Amex: TTP) on Nov. 30 declared its initial distribution of $0.40625 per share.

The distribution will be paid on March 1, 2012, to stockholders of record on Feb. 22.

The distribution achieves the fund's target of a 6.5 percent annualized yield on its $25 public offering price.

The fund focuses particularly on North American pipeline companies that transport natural gas, natural gas liquids, crude oil and refined products, and to a lesser extent, on other energy infrastructure companies.

As a flow-through regulated investment company, the fund may efficiently purchase securities of traditional pipeline corporations along with master limited partnerships. Its investment objective is to provide stockholders a high level of total return, with an emphasis on current distributions.