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Rose Rock Midstream Raises Cash Distribution by 7.8% Q/Q - Analyst Blog

Rose Rock Midstream LP ( RRMS ) continues to share more wealth with its unitholders through consistent cash distribution hikes. The partnership announced a new quarterly cash distribution rate of 62 cents per unit to be paid on Feb 13, 2015, to unitholders of record as of Feb 3, 2015.

The partnership has been increasing distributions ever since its inception. With the latest distribution, Rose Rock Midstream has hiked the quarterly rate in 12 straight quarters.

The new distribution rate reflects 7.8% growth over the quarterly distribution of 57.50 cents per unit paid in Nov 2014 and 33.3% growth from 46.50 cents per unit paid in Feb 2014.

The partnership is working to strengthen its operations and create sources of funds that could lead to better distribution.

In Nov 2014, Rose Rock Midstream, L.P. along with its joint partners Noble Energy, Inc. ( NBL ), Plains All American Pipeline, L.P. ( PAA ) and Western Gas Partners LP ( WES ) announced plans to expand the pipeline capacity of White Cliffs Pipeline, LLC.

The project expansion is expected to complete in the third quarter of 2015 and upon completion the capacity of the pipeline will increase to a maximum of around 215,000 barrels per day (BPD) from 150,000 BPD. (read: Rose Rock to Expand the White Cliffs Pipeline with Partners ).

The demand for midstream services has increased rapidly due to strong production from the U.S. shale assets. Rose Rock Midstream serves regions which are presently seeing a lot of drilling.

The partnership's exposure to the Bakken Shale in North Dakota and Montana, the Denver-Julesburg Basin and the Niobrara Shale in the Rocky Mountain region, and the Granite Wash and the Mississippian oil trend in the Mid-Continent region could bring in more benefits once oil prices start to recover.

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ROSE ROCK MIDST (RRMS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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