logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

 


IPO Report: Cypress Energy Partners LP (CELP)

By  +Follow January 14, 2014 12:31PM
Share:
Tickers Mentioned:

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


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for celp
Nara
3 Sep 15 11:41:33
$ENG $CNNX $BBEPP $IPAS $EXXI $EAC $CELP $HK Upcoming catalyst for GNSZ. Find details here: https://t.co/gv9He7HRvh
Nara
3 Sep 15 06:46:02
$CIE $AT $CELP $DCIX $ROYT $AG JBEM's new pick after TRVN TPIV AVXL..Details here: https://t.co/gv9He7HRvh
Nara
3 Sep 15 05:45:07
$CIE $AT $CELP $DCIX $ROYT $AG JBEM's new pick after TRVN TPIV AVXL..Details here: https://t.co/gv9He7HRvh
Nara
2 Sep 15 18:49:25
$CDTI $CDVIQ $CELP $CETX $CFX $CGG JBEM Glioblastoma Data Trade. Read full DD here: https://t.co/gv9He7HRvh
Shiraz Lakhi
2 Sep 15 07:17:02
Gap Stock Screener: Biggest % Gap-Up Openers in INDUSTRIAL #Stocks $CVEO $EFOI $CELP $QRHC ++ Full List Here: http://t.co/nusc0cmNJt
InvestWithConf
31 Aug 15 05:23:03
$CELP is rated BUY, 49.8% upside by Wall Street analysts based on average ratings/targets http://t.co/5aeQpjmuIq http://t.co/3uMRosIOss
stockschamp
30 Aug 15 22:29:16
Gains Over 2500% In one Trade.. Subscribe Here! http://t.co/8WvnrVmkBS .. $CEL $CELP $CEM
danrocks
27 Aug 15 07:58:39
Right now CELP is number 49 for the largest percentage gain out of 250 stocks. $CELP CELP is up +13.33% in the http://t.co/DpJ9z8bY7Z
Breaking News Now
27 Aug 15 04:09:04
$CELP: Stocks in Focus: Cypress Energy Partners (NYSE:CELP), The …: http://t.co/p0q07t6TTV
Consumer News
26 Aug 15 23:59:25
Cypress Energy Partners LP Insider George Austin Buys $1,710 in $CELP http://t.co/9UJqiMWbok
US Consumer News
26 Aug 15 23:36:47
Cypress Energy Partners LP Insider George Austin Buys $1,710 in $CELP http://t.co/auJZifWLL0
US Banking News
26 Aug 15 23:36:39
Cypress Energy Partners LP Insider George Austin Buys $1,710 in $CELP http://t.co/bJGTsMCeSR
Consumer News
26 Aug 15 23:29:31
Cypress Energy Partners LP Insider George Austin Buys $1,710 in $CELP http://t.co/9UJqiMWbok
Consumer News
26 Aug 15 22:59:28
Cypress Energy Partners LP Insider George Austin Buys $1,710 in $CELP http://t.co/9UJqiMWbok
US Banking News
26 Aug 15 22:21:33
Cypress Energy Partners LP Insider George Austin Buys $1,710 in $CELP http://t.co/bJGTsMCeSR
US Consumer News
26 Aug 15 22:21:31
Cypress Energy Partners LP Insider George Austin Buys $1,710 in $CELP http://t.co/auJZifFaTs
Consumer News
26 Aug 15 21:59:25
Cypress Energy Partners LP Insider George Austin Buys $1,710 in $CELP http://t.co/9UJqiMWbok
US Consumer News
26 Aug 15 21:09:11
Cypress Energy Partners LP Insider George Austin Buys $1,710 in $CELP http://t.co/auJZifFaTs
US Banking News
26 Aug 15 21:09:01
Cypress Energy Partners LP Insider George Austin Buys $1,710 in $CELP http://t.co/bJGTsMCeSR
Consumer News
26 Aug 15 20:59:38
Cypress Energy Partners LP Insider George Austin Buys $1,710 in $CELP http://t.co/9UJqiMWbok
Breaking News Now
26 Aug 15 20:35:03
$CELP: Cypress Energy Partners, L.p. (CELP) Files Form 4 Insider Buying …: http://t.co/srUos4fzcQ
US Banking News
26 Aug 15 19:48:48
$CELP - Insider Buying: George L. Austin Purchases 171 Shares of Cypress Energy Partners Stock #CELP http://t.co/Vgb5sTfIj8
Consumer News
26 Aug 15 19:44:39
Insider Buying: George L. Austin Purchases 171 Shares of Cypress Energy Partners Stock $CELP http://t.co/nzPqYbgRWy #acn
WKRB News
26 Aug 15 08:26:00
Cypress Energy Partners insider Buys $52,500.00 in Stock $CELP http://t.co/5XRQD9PFPP
				
				
By  +Follow January 14, 2014 12:31PM
Share:

Comments

 

blog comments powered by Disqus

 Today's Must Reads

Welcome to Equities.com's Small-Cap Throwdown


These Analysts Called Apple's (AAPL) Collapse, Here's What They're Saying Now

7 Dow Stocks Worth Owning and a Lot that Aren't

Sprint Turnaround Has Begun


Saving the

Small-Cap Market

 

Small-cap stocks offer investors many benefits, ranging from higher growth potential to overlooked value opportuni... in Equities.com's Hangs on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register

LOG IN