Access Midstream Partners L.P.
) has priced an underwritten secondary public offering of
6,000,000 common units - being sold by a major owner - at $51.45
a piece, with a 30-day over-allotment option for an additional
900,000 units. The offering, announced Dec 3, will be offered by
Access Midstream pursuant to an effective shelf registration
statement filed with the Securities and Exchange Commission (SEC)
in last Dec.
The natural gas pipeline master limited partnership (MLP) will
not get the net proceeds from this offering, which will go to the
seller - private equity firm Global Infrastructure Partners -
that owns a substantial number of Access Midstream units.
Access Midstream, which was spun off from U.S. gas producer
Chesapeake Energy Corp.
) in Jun 2012 and is now controlled by Global Infrastructure
Partners, is engaged in the gathering and processing of natural
gas. The partnership's operations are concentrated primarily in
the major gas shale plays that include the Barnett Shale, Eagle
Ford Shale, Haynesville Shale, Marcellus Shale and Mid-Continent
regions of the U.S.
Having done a stellar job at boosting its presence in leading
unconventional plays and creating a best-in-class business model,
analysts are predicting strong earnings growth for Access
Midstream over the next couple of years. The 2013 Zacks Consensus
Estimate is $1.45, representing 21% earnings per unit growth over
2012. Next year's average forecast is $1.68, corresponding with
However, units of Access Midstream - currently trading at $51.47
- have already climbed some 50% in 2013. Therefore, any upside
from here may be limited.
As a result, Access Midstream currently retains a Zacks Rank #3
(Hold), implying that it is expected to perform in line with the
broader U.S. equity market over the next one to three months.
However, some better-ranked energy stocks include
SM Energy Co.
Harvest Natural Resources Inc.
). Both these stocks carry a Zacks Rank #1 (Strong Buy).
ACCESS MIDSTRM (ACMP): Free Stock Analysis
CHESAPEAKE ENGY (CHK): Free Stock Analysis
HARVEST NATURAL (HNR): Free Stock Analysis
SM ENERGY CO (SM): Free Stock Analysis Report
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