PennTex Midstream Partners LP’s (NYSE: PTXP) initial asset base will consist of gas-gathering pipelines and -processing plants in Northern Louisiana that operate under long-term contracts with primary customer, Memorial Resource Development Corp (NSDQ: MRD).
These agreements include minimum volume commitments and firm capacity reservations, terms that should guarantee a reliable stream of cash flow. PennTex Midstream Partners’ most recent registration statement indicated that actual throughput should easily exceed these minimum commitments.
Drop-down transactions from sponsor PennTex Development, which is wholly owned by private-equity outfit NGP Gas Partners, will be part of PennTex Midstream Partners’ near-term growth story.
The MLP has the right of first offer with respect to any of PennTex Developments’ under-construction or future midstream assets in the area of mutual interest depicted below.
At present, the Mount Olive gas-processing plant and related pipeline infrastructure are the sole drop-down candidates. This system, which can handle up to 200 million cubic feet per day of throughput, is slated for completion in October 2015 and will operate under a 15-year contract with Memorial Resource Development.
Your complete guide to energy investing, from growth stocks to high-yielders.
In October 2012, renowned energy expert Elliott Gue launched the Energy & Income Advisor, a twice-monthly investment advisory that's dedicated to unearthing the most profitable opportunities in the sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.
Elliott and Roger on Feb. 28, 2017
Balanced portfolios of energy stocks for aggressive and conservative investors.
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
Our assessment of every energy-related master limited partnership.
Roger Conrad’s coverage of more than 70 dividend-paying energy names.