PennTex Midstream Partners LP, an NGP-backed MLP owning midstream assets contracted to Memorial Resource, filed on Tuesday with the SEC to raise up to $150 million in an initial public offering.
PennTex Midstream operates as a growth-oriented fee-based MLP in Northern Louisiana supported by 15-year contract agreements with Memorial Resource Development (MRD). Memorial Resource, also an affiliate of NGP, has traded up went public in June and has gained 44% since its June 2014 IPO.
Natural Gas Partners owns a 95% pre-IPO stake in PennTex.
The IPO candidate will use IPO proceeds to pay a dividend and to acquire its initial assets, which are being constructed in the Cotton Valley formation. As such, PennTex Midstream has no operating history.
The Houston, TX-based company, which was formed in 2014, plans to list on the NYSE under the symbol PTXP. PennTex Midstream Partners LP initially filed confidentially on August 27, 2014. Citi, Barclays, RBC Capital Markets and Tudor, Pickering, Holt & Co. are the joint bookrunners on the deal. No pricing terms were disclosed.
