2013's MLP Rush Culminates with 8 Fourth Quarter IPOs

There were 20 master limited partnership IPOs in 2013, and eight of them came in the fourth quarter. As the month of December winds down, let's take a look back at the last of 2013's MLP IPOs.

October
October was the biggest month of the year for MLP IPOs, with four total. It also took the crown for month with the most equity raised at IPO, with roughly $3.5 billion spread between the four IPOs. OCI Partners (NYSE: OCIP  ) kicked things off on October fourth. The stock did not pop at IPO, but has soared more than 49% in the interim. The partnership owns and operates OCI Beaumont, a methanol and ammonia facility in Beaumont, Texas .

Western Refining Logistics (NYSE: WNRL  ) followed OCI Partners, going public six days later. The partnership is the result of Western Refining spinning off some of its logistic assets in an effort to monetize that part of its business. Its growth since October pales in comparison to OCI Partners, up a mere 8%.

Plains GP Holding (NYSE: PAGP  ) debuted on the 16th, and it takes the prize for largest MLP IPO of the year, raising an eye-popping $2.8 billion. For reference, CVR Partners (NYSE: CVRR  ) had the second-largest MLP IPO, raising $600 million in January. Investors can't get enough of this general partner that is structured as an MLP but taxed as a corporation, and have driven PAGP units up 20% year to date .

October's IPOs came to a close with Sprague Resources, which hit the street on October 25. The refined products terminal operator is having a rougher go of its first few months on the market, posting a roughly flat return on the year .

November
At first blush, November looked capable of surpassing October's four IPOs with three in the first two weeks. It was not meant to be, and Midcoast Energy Partners, Arc Logistics, and Dynagas LNG Partners were all she wrote.

Collectively, these three debuts raised $672 million at IPO. Dynagas LNG has posted the best performance so far, as the LNG vessel owner is up more than 26% year to date. Liquefied natural gas is becoming an increasingly interesting angle in the MLP space, not just with shipping, but including the actual LNG facilities.

December
Last but not least, Valero Energy Partners (NYSE: VLP  ) hit the street on December 10. It's up 13% since its IPO, and makes Valero the last major refiner to spin off its midstream assets into an MLP. Valero Energy Partners popped more than 21% on its first day of trading, placing it in the top ten all time for Day One MLP pops .

Bottom line

There will certainly be MLP IPOs next year, but it is unlikely we'll see the sheer volume of offerings that we had in 2013. It is extremely likely that the space will begin to contract via a ramp up in merger and acquisition activity. What will be interesting to watch going forward is whether or not the MLP Parity Act comes tro fruition, granting renewable energy companies the same ability to structure themselves as MLPs.

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