09-Dec-11 09:47 ET SCALP ScalpTrader: My top Syndicate Contact is positive on this Rose Rock Midstream (RRMS), an IPO that just opened for trading after pricing at $20. Notes that no stock around, good yield and that stock in institutional hands. Likes it for a trade and investment. (20.60 +0.61) -Update
09-Dec-11 09:44 ET RRMS Rose Rock Midstream opens for tradinag at $20.56 after pricing IPO at $20 (20.52 ) -Update
09-Dec-11 08:51 ET RRMS Rose Rock Midstream IPO Pricing Details Last night, RRMS priced its 7.0 mln share IPO at $20, which is at the midpoint of the expected range of $19-$21. The deal raised total gross proceeds of $140 mln and was led by Barclays, Citigroup, and Deutsche Bank... RRMS is a limited partnership that SemGroup (SEMG) created by to own, operate, develop and acquire a diversified portfolio of midstream energy assets. As a midstream provider, RRMS is involved in the gathering, transportation, storage and marketing of crude oil with operations in Colorado, Kansas, Montana, North Dakota, Oklahoma and Texas. It has exposure to well-developed drilling areas including 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. Yet, the majority of RRMS' assets are located in or connected to the Cushing, Oklahoma crude oil marketing hub. Cushing is the designated point of delivery specified in all NYMEX crude oil futures contracts and is one of the largest crude oil marketing hubs in the U.S. The company sees its Cushing connections as an advantage in providing customers with the flexibility to access multiple points for the receipt and delivery of crude oil... Because RRMS is a newly created entity, there is no financial history and it's difficult to gauge a comparable valuation on the company. However, RRMS' predecessor, working under SemGroup, generated $299 mln over the first nine months of 2011 and distributed $0.87 to its shareholders.