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IPO Report: Cypress Energy Partners LP (CELP)

By  +Follow January 14, 2014 12:31PM
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Cypress Energy Partners LP ($CELP) is in the oilfield waste treatment, water and environmental services, and disposal business. CELP is a private-equity backed deal that looks like it was put together for the purposes of an IPO.

The Manager & Joint managers are Raymond James, Baird, Stifel, BMO Capital Markets. The Co-Managers are Janney Montgomery Scott, Wunderlich Securities. SEC Documents

CELP scheduled a $75 million IPO with a market capitalization of $237 million at a price range midpoint of $20 for Thursday, January 15, 2014. CELP was previously scheduled for Thursday.

The full IPO calendar can be found at IPOpremium. Five operating companies are scheduled to raise over $2 billion this week.

Valuation Ratios

Mrkt

Price /

Price /

Price /

Price /

% offered

12 mos ended Sept /13

Cap (mm)

Sls

Erngs

BkVlue

TanBV

in IPO

Cypress Energy Partners, L.P. (CELP)

$236

2.6

13.9

1.6

6.2

32%

             

Glossary

           


Conclusion

Positive: yields 7.75%.

On a proforma basis for the 12 months ended September ’13, CELP was only able to cover 82% of the projected full payout covering the full number of units outstanding.

Business

CELP is a growth-oriented master limited partnership that provides saltwater disposal (SWD) and other water and environmental services to U.S. onshore oil and natural gas producers and trucking companies.

Through its Water and Environmental Services segment, which is comprised of the historical operations of the SBG Predecessor and the CEP Successor, CELP owns and operates nine SWD facilities, seven of which are in the Bakken Shale region of the Williston Basin in North Dakota and two of which are in the Permian Basin in west Texas.

CELP also manages four other SWD facilities in the Bakken Shale region. CELP’s Water and Environmental Services segment customers are oil and natural gas exploration and production companies and trucking companies operating in the regions that CELP serves.

CELP’s Water and Environmental Services segment is comprised of the historical business of the CEP Successor. Through its Pipeline Inspection and Integrity Services segment, CELP provides independent pipeline inspection and integrity services to various energy, public utility and pipeline companies.

In both of these business segments, CELP works closely with its customers to help them comply with increasingly complex and strict environmental and safety rules and regulations applicable to production and pipeline operations and reduce their operating costs.

CELP generates revenue in its Water and Environmental Services segment primarily by treating flowback and produced water and injecting the saltwater into its SWD facilities. CELP’s results in the Water and Environmental Services segment are driven primarily by the volumes of produced water and flowback water CELP injects into its SWD facilities and the fees CELP charges for its services.

These fees are charged on a per barrel basis and vary based on the quantity and type of saltwater disposed, competitive dynamics, and operating costs.

In addition, for minimal marginal cost, CELP generates revenue by selling residual oil it recovers from the flowback and produced water. Through its 51% ownership interest in CES, CELP also generates revenue managing SWD facilities for a fee.

Competition

Water and Environmental Services Competition

CELP’s competition consists primarily of smaller regional companies that utilize a variety of disposal methods and generally serve specific geographical markets.

In addition, CELP faces competition from other large oil field service companies that also own trucking operations and CELP’s customers, who may have the option of using internal disposal methods instead of outsourcing to CELP or another third-party disposal company.

Pipeline Inspection and Integrity Services Competition

The pipeline inspection and integrity business is highly competitive. The TIR entities’ competition consists primarily of three types of companies: independent energy inspection firms, engineering and construction firms and diversified inspection service firms.

Diversified inspection firms may inspect, for example, electric and nuclear facilities in addition to pipelines.

5% stockholders

Cypress Energy Holdings, LLC owns 100.0% of Cypress Holdings II, LLC, which owns 100.0% of the general partner. Following this offering, Cypress Energy Holdings, LLC will own, indirectly through its ownership of Cypress Holdings II, LLC, 20.8% of CELP’s common units and 83.4% of CELP’s subordinated units.

The following table sets forth the beneficial ownership of Cypress Energy Holdings, LLC after this offering:

Name of Beneficial Owner                      Ownership Interest

Cynthia A. Field Trust (b)                                   36.750 %

Charles C. Stephenson, Jr.                                27.468 %

CEP Capital Partners, LLC                                 24.500 %

Use of proceeds

CELP expects to net $69.8 million from its IPO. Proceeds are allocated as follows:

To distribute all of these proceeds to a wholly owned subsidiary of Cypress Holdings as reimbursement for certain capital expenditures it incurred with respect to assets contributed to CELP.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for celp
The Legacy News
21 May 15 07:27:27
Robert W. Baird Raises Cypress Energy Partners Price Target to $19.00 $CELP http://t.co/XVicjKfIfh
ProTradersNews
21 May 15 07:24:03
$CELP: Robert W. Baird Raises Cypress Energy Partners Price Target to ...: http://t.co/QlkA5AIITk
MyAllies Trading
21 May 15 05:49:28
$CELP Cypress Energy Partners, L.P. Announces Timing of First Quarter Earnings Release and Conference Call http://t.co/fWUqXLmehM
Breaking News
20 May 15 17:43:23
$CELP: New Insider Transaction on CELP by Director: http://t.co/0yXC6Q1eqq
Insider Alerts
20 May 15 17:43:14
NEW insider transaction on $CELP reported a moment ago: http://t.co/ro5niYLd0v
WKRB News
20 May 15 08:35:32
Cypress Energy Partners PT Raised to $19.00 at Robert W. Baird $CELP http://t.co/nb5jyP3Vrf
BreakingStocksNews
20 May 15 08:28:02
$CELP: Cypress Energy Partners PT Raised to $19.00 at Robert W. Baird ...: http://t.co/cIEUwzPYWL
WKRB News
20 May 15 06:12:42
Raymond James Raises Cypress Energy Partners Price Target to $17.00 $CELP http://t.co/PATmemZadq
Breaking News
20 May 15 06:04:05
$CELP: Raymond James Raises Cypress Energy Partners Price Target to ...: http://t.co/JXDov7AMjx
InvestWithConf
19 May 15 17:28:02
$CELP is rated BUY, 17.4% upside by Wall Street analysts based on average ratings/targets http://t.co/5aeQpjmuIq http://t.co/zJLm5MtOq3
US Banking News
19 May 15 14:25:29
Cypress Energy Partners PT Raised to $19.00 $CELP http://t.co/0xbERJtNK8
Analyst Ratings
19 May 15 14:12:22
Cypress Energy Partners LP's PT raised by Robert W. Baird to $19.00. outperform rating. http://t.co/cRfRoXYsjr $CELP #CELP
Ticker Report
19 May 15 14:11:26
Robert W. Baird Boosts Cypress Energy Partners Price Target to $19.00 $CELP http://t.co/5v8zec4RVM
Dakota Financial
19 May 15 14:09:36
Robert W. Baird Boosts Cypress Energy Partners Price Target to $19.00 $CELP http://t.co/7iOQ3pcom4
Breaking News Now
19 May 15 14:08:01
$CELP: Robert W. Baird Boosts Cypress Energy Partners Price Target to ...: http://t.co/97Ub41KJUZ
US Consumer News
19 May 15 14:02:46
Cypress Energy Partners LP's PT raised by Robert W. Baird to $19.00. outperform rating. http://t.co/qWCkG1vWzt $CELP #CELP
StockNewsWires
19 May 15 11:48:05
$CELP: Baird Maintains Cypress Energy Partners (CELP) to Outperform with ...: http://t.co/1wpj7Q6Ze6
Sleek Money
19 May 15 07:05:37
Raymond James Increases Cypress Energy Partners Price Target to $17.00 $CELP http://t.co/76avIFL9Qg
FirstToMarkets
18 May 15 16:11:56
Cypress Energy Partners, L.P. Boost Price Target by Raymond James (Ranked 28th) to Outperform with 17 PT $CELP #CELP http://t.co/8QGqHItdhs
FirstToMarkets
18 May 15 15:45:25
Cypress Energy Partners, L.P. Boost Price Target by Raymond James (Ranked 28th) to Outperform with 17 PT $CELP #CELP http://t.co/8QGqHIKO90
Breaking News
18 May 15 15:23:02
$CELP: Raymond James Sets Cypress Energy Partners (CELP) PT at $17.00: http://t.co/0CwkRLiNOD
FirstToMarkets
18 May 15 14:25:13
Cypress Energy Partners, L.P. Boost Price Target by Raymond James (Ranked 28th) to Outperform with 17 PT $CELP #CELP http://t.co/8QGqHIKO90
WKRB News
18 May 15 14:16:55
Cypress Energy Partners Price Target Raised to $17.00 at Raymond James $CELP http://t.co/V5KplaflcK
BreakingStocksNews
18 May 15 14:16:04
$CELP: Cypress Energy Partners Price Target Raised to $17.00 at Raymond ...: http://t.co/JQ6IUJvqTZ
Analyst Ratings
18 May 15 14:13:15
Cypress Energy Partners LP's PT raised by Raymond James to $17.00. outperform rating. http://t.co/71fX2VzCVI $CELP #CELP
Ticker Report
18 May 15 14:11:25
Cypress Energy Partners Given New $17.00 Price Target at Raymond James $CELP http://t.co/2J4WEz60e9
Dakota Financial
18 May 15 14:09:25
Cypress Energy Partners Given New $17.00 Price Target at Raymond James $CELP http://t.co/aFoDwd94xk
US Consumer News
18 May 15 14:03:24
Cypress Energy Partners LP's PT raised by Raymond James to $17.00. outperform rating. http://t.co/1avLe6S4Y7 $CELP #CELP
ProTradersNews
18 May 15 14:03:02
$CELP: Cypress Energy Partners Given New $17.00 Price Target at ...: http://t.co/JXPl43g5se
StockNewsWires
18 May 15 13:03:03
$CELP: Raymond James Maintains Cypress Energy Partners (CELP) to ...: http://t.co/eg2EttBkVx
Penny Stock Secret
18 May 15 09:02:42
Ranks #1 with over 80% in alert gains today. Click here http://t.co/NovWYe2RAx .. $CEL $CELP $CEM
Envestor First
16 May 15 21:18:39
Cypress Energy $CELP Q1 EPS of $0.22 beats by $0.02. Revenue of $94.1M (-3.5% Y/Y) misses by $5.93M.
BreakingStocksNews
15 May 15 14:06:03
$CELP: New SEC Filing for CELP: Form 8-K (No. 0001437749-15-010424): http://t.co/kzLVfFYUpi
Latest SEC Filings
15 May 15 14:04:20
NEW SEC Filing for $CELP filed a moment ago: http://t.co/w9XZIuutHC http://t.co/MDQHJo7jIx
InvestWithConf
15 May 15 12:44:02
$CELP is rated BUY, 13.2% upside by Wall Street analysts based on average ratings/targets http://t.co/5aeQpjmuIq http://t.co/CbyhtDsWWk
Dakota Financial
15 May 15 04:19:32
Cypress Energy Partners $CELP Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS http://t.co/Dfb7jBMClV
				
				
By  +Follow January 14, 2014 12:31PM
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