BP is considering an IPO of its vast U.S. Midwest and Gulf Coast pipeline assets, the company said July 18, a move that would raise cash.
Proceeds from IPOs of MLPs, the structure used by most energy firms to house assets that ship and store oil and gas, dropped to $323 million last year from $4.9 billion in 2015, according to Thomson Reuters data, Reuters reported.
Kinder Morgan said April 24 its Canadian unit filed a prospectus for an IPO of restricted voting shares, to help finance its C$7.4 billion (US$5.48 billion) Trans Mountain expansion project.
Austrian oil and gas group OMV AG said April 24 it would provide long-term financing to secure 30% of its share of project costs of the Nord Stream 2 pipeline from Russia.
The offering is expected to close on April 10. Upon closing, the public will hold an approximate 26.5% limited partner interest. If the underwriters exercise the option in full, that interest will be an approximate 30.5%.
The net proceeds will repay the $185 million of 5.95% senior notes due 2017 upon their maturity on April 15, and support general corporate purposes.