PennTex Midstream Partners LP (PTXP) has priced its initial public offering of 11,250,000 common units representing limited partner interests at $20 per common unit. The common units are expected to begin trading on the NASDAQ Global Select Market on June 4, under the symbol "PTXP."
The underwriters for the offering have a 30-day option to purchase up to an additional 1,687,500 common units. The offering is expected to close on or about June 9.
PTXP is a growth-oriented master limited partnership formed by affiliates of Natural Gas Partners (NGP) and members of management to own, operate, acquire, and develop midstream energy infrastructure assets in North America. Following closing of the offering, PTXP will provide natural gas gathering and processing and residue gas and natural gas liquids transportation services to producers in northern Louisiana, including to a subsidiary of Memorial Resource Development Corp., an NGP-affiliated independent natural gas and oil company focused on the development of liquids-rich natural gas opportunities in its Terryville Complex acreage.
At the closing of the offering, the public investors purchasing in the offering will own a 28.1% limited partner interest in the Partnership, or a 32.3% limited partner interest if the underwriters exercise in full their option to purchase additional common units. In addition, upon closing of the offering, PennTex Midstream Partners LLC (PennTex Development) and MRD WHR LA Midstream LLC, an affiliate of NGP (MRD WHR LA), will own 40.4% and 27.0% of the limited partner interests in PTXP, respectively (or 37.8% and 25.4%, respectively, if the underwriters exercise in full their option to purchase additional common units). PennTex Development and MRD WHR LA will also own 92.5% and 7.5% of the incentive distribution rights in PTXP, respectively, and a corresponding percentage of PTXP's general partner at the closing of the offering.
Citigroup, Barclays, RBC Capital Markets, Wells Fargo Securities, Deutsche Bank Securities, JP Morgan, SunTrust Robinson Humphrey, and Tudor, Pickering, Holt & Co. are acting as book-running managers for the offering. Raymond James, Baird, Stifel, and Wunderlich are acting as co-managers for the offering.