Shell Midstream Applies for US IPO

By Dow Jones Business News, 
A A A


LONDON--Royal Dutch Shell PLC on Wednesday filed registration documents with the U.S. Securities and Exchange Commission to float Shell Midstream Partners L.P. on the New York Stock Exchange.

The Anglo-Dutch oil major said it expects the initial public offering of Shell Midstream to take place in the second half of this year.

Under Chief Executive Ben van Beurden, who took charge of Shell at the beginning of this year, the company has been trying to cut costs and streamline its operations, in part by selling assets. The company plans about $15 billion in divestitures by the end of next year.

Shell Midstream was formed as a vehicle to own, operate, develop and acquire pipelines and other midstream assets. Based in Houston, Texas, Shell Midstream's initial assets are expected to consist of ownership interests in four onshore and offshore pipelines, located primarily in Texas and Louisiana.

Shell Midstream reported a 29% rise in first-quarter revenue to $36.1 million and $15 million profit, compared with a break-even performance in the prior-year period, as operating and maintenance costs nearly halved.

Barclays and Citigroup C +0.31% are acting as book-running managers and structuring agents for the proposed offering.

-Justin Scheck and Kevin Kinsbury contributed to this article

Write to Ian Walker at ian.walker@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires


  (END) Dow Jones Newswires
  06-18-140815ET
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This article appears in: IPOs


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