Caliber is a newly-formed, Denver-based limited partnership which will focus on midstream and infrastructure opportunities in the Williston Basin of North Dakota and Montana
Caliber will initially be capitalized with a total of $180mm of equity commitments ($150mm from FREIF, $30mm from Triangle)
Caliber will focus its efforts on designing safe and reliable pipeline solutions for the water, oil and gas transportation and processing needs of its customers
Construction is underway on a Phase 1 pipeline system in McKenzie County which will serve the needs of Triangle and other Caliber customers by reducing the cost of oil and gas drilling and completion operations as well as the environmental impact associated with those operations
Caliber plans to expand its Phase 1 system in McKenzie County and to build new infrastructure in other counties of North Dakota and Montana as needed by its customers
Caliber plans to begin transportation and processing operations in November 2012, with all business lines expected to be in service by August 2013
At inception, Caliber will provide services to Triangle under a 15-year volume-based contract, and will also seek to add future third party volumes to its system
I think the shelf offering is just setting up a LOC so that if/when they find some bolt on acreage around their core, they can add it. Having the flexibilty to strike when the iron is hot is just smart business.
That would be an ideal scenario. My main concern for the time being is the allocation between debt and equity for the $400 million shelf offering. I'm hoping they can work out a deal similar to the one they did with NGP. This will probably continue to drift lower until some clarity is added surrounding the debt/equity allocation. I'm a buyer in the low 5's and am looking for a double from that point. I do believe TPLM has a very good chance of trading in the $10+ range in 1-2 years but not before dipping back to the $5 mark.