Tulsa, Okla.-based Rose Rock Midstream LP (RRMS) recently announced the pricing of a public offering of 4,750,000 common units. The partnership also offered a 30-day option to the underwriters to purchase 712,500 additional units. The units were priced at $33.44 a piece.
Rose Rock Midstream plans to utilize the net proceeds to pay off the outstanding balance under its revolving credit facility, for expenditure related to fund capital and other partnership purposes.
On Aug 8, 2013, the partnership reported second-quarter 2013 earnings per unit of 44 cents, in line with the Zacks Consensus Estimate and ahead of the year-ago profit of 30 cents. The result was aided by a fall in operating expenses and cash distribution received from White Cliffs Pipeline and was partially offset by decreased crude marketing margins.
Last month, the partnership declared cash distribution of 44 cents per unit for the second quarter of 2013 ($1.76 per unit annualized), representing sequential increase of 2.3% and year over year increase of 15%. The distribution is payable on Aug 14, 2013 to the unit holders of record as of Aug 5, 2013.
Rose Rock Midstream is primarily involved in the operation and development of midstream energy properties. The partnership also owns and acquires those assets. In addition, Rose Rock Midstream gathers, transports and stores crude oil.
The partnership currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next 1 to 3 months.
Meanwhile, one can look at oil and gas production master limited partnerships (MLP) like Magellan Midstream Partners LP (MMP), Delek Logistics Partners LP (DKL) and Pioneer Southwest Energy Partners LP (PSE) that offer value. Magellan Midstream recently carries a Zacks Rank #1 (Strong Buy), while Delek Logistics and Pioneer Southwest Energy sport a Zacks Rank #2 (Buy).
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