Units of midstream energy services provider EnLink Midstream Partners, LP (ENLK) witnessed a decline of 3.6% on Friday following the announcement of its 10.5 million common units offering, which was priced at $28.37 per unit.
EnLink Midstream added that it has given underwriters a 30-day period to buy 1,575,000 additional units. The offering is likely to close on Nov 19.
The partnership added that it plans to utilize the funds generated from the offering (including proceeds from the underwriter option if exercised) for capital spending and other general partnership purposes.
EnLink Midstream is an integrated midstream firm with assets comprising gathering and transportation pipelines and processing facilities. On Nov 5, the partnership reported third-quarter 2014 earnings of 18 cents per unit, which failed to meet the Zacks Consensus Estimate by 4 cents. However, results improved from the year-ago period on strong segment performances and organic growth projects.
Earlier this month, the partnership announced two-part senior notes offering totaling $400 million. A $100 million offering, due 2024 and carrying an interest rate of 4.400% was priced at 104.007% of its face value. The remaining $300 million offering, due 2045 and carrying an interest rate of 5.050% was priced at 99.452% of its face value.
Currently, Dallas-based EnLink Midstream carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. market in the next one to three months.
Meanwhile, one could consider better-ranked players from the same industry like Atlas Pipeline Partners, L.P. (APL), Magellan Midstream Partners LP (MMP) and Regency Energy Partners LP (RGP). All these stocks hold a Zacks Rank #2 (Buy).
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