Exmar Energy Partners LP, an MLP carved out of Exmar to jointly own five LNG vessels, filed on Wednesday with the SEC to raise up to $125 million in an initial public offering. Exmar was the third energy MLP to file for an IPO on Wednesday as the space sees higher interest, after Hess Midstream Partners LP (HESM) and Mammoth Energy Partners LP (TUSK).
Business
Exmar Energy Partners will own a 50% joint venture interest in four liquefied natural gas regasification vessels (LNGRV) and one LNG carrier. All five vessels are under charter with Excelerate Energy and charter expiration dates range from 2022 to 2034. Three vessels are also 50% owned by Excelerate and the other two are 50% owned by Teekay LNG (NYSE: TGP). After the offering, the IPO candidate will have the right to purchase the world's first floating liquefaction and storage unit (FLSU) from parent Exmar and a 50% interest in an LNG carrier. As an
LNG vessel IPOs
LNG peer Hoegh LNG Partners LP (HMLP) went public in August and has traded up 18% after pricing its $192 million IPO at the midpoint. Another LNG carrier spinoff, GasLog Partners (GLOP), raised $176 million in May and has traded up 45%.
Recent financials
Predecessor revenue fell 8% to $61 million during the six months ended June 30, 2014. EBITDA rose 8% to $46 million. For the twelve months ended September 30, 2015, Exmar Energy Partners LP forecasts it will produce $8.5 million cash available for distribution. Initially, all cash will come from its two Teekay joint ventures as the company pays down debt related to the Excelerate JVs.
The Hong Kong-based company, which was formed by Exmar in 2014 and booked $123 million in predecessor sales for the 12 months ended June 30, 2014, plans to list on the NYSE under the symbol XMLP. Exmar Energy Partners LP initially filed confidentially on February 28, 2014. J.P. Morgan, BofA Merrill Lynch and Citi are the joint bookrunners on the deal. No pricing terms were disclosed.
