Devon Midstream Partners files for IPO of up to $400 million
(Reuters) - Devon Midstream Partners L.P. filed with U.S. regulators on Friday to raise up to $400 million in an initial public offering of its common units.
The Oklahoma-based company was formed by oil and gas company Devon Energy Corp (DVN.N) to process and transport natural gas, primarily for Devon.
The master limited partnership (MLP) structure allows certain companies to raise money in the stock market, while having income taxed only at the unit holder level, avoiding corporate income taxes.
Another MLP, Valero Energy Partners, last week filed to raise up to $345 million in an initial public offering. The company was formed by Valero Energy Corp (VLO.N), the largest U.S. refiner.
Merrill Lynch, Pierce, Fenner & Smith Inc and Barclays are the lead underwriters to the offering, Devon Midstream Partners said in the filing. (r.reuters.com/jev43v)
The company intends to list its common units on the New York Stock Exchange under the symbol "DVNM".
Net income attributable to Devon Midstream Partners was $21.9 million on a pro forma basis for the six months ended June 30, according to the filing.
The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.
(Reporting By Neha Dimri in Bangalore; Editing by Sriraj Kalluvila)