Amid Wall Street’s dealings with fiscal cliff uncertainty, a dry IPO market was to be expected … and we got it. This week, there’s just one deal planned: Western Gas Equity Partners LP.
The master limited partnership plans to issue 15 million shares — on the New York Stock Exchange under the symbol “WGP” — at a range of $19 to $21. The lead underwriters include Barclays (NYSE:BCS) and Citigroup (NYSE:C).
Western Gas is a wholly owned subsidiary of Anadarko Petroleum (NYSE:APC). The division focuses on the acquisition and development of midstream energy assets, which are located in Texas, Colorado, Utah, Wyoming, Kansas and Oklahoma. About one-third of the customer contracts are on a long-term basis (with minimums of 10 years).
For the first nine months of 2012, revenues for Western Gas increased by 4.7% to $636.6 million, though earnings dropped by 40% to $35.5 million — that said, it’s not wholly a reason for concern, as the company has been investing heavily in the development of its properties.
Don’t look for things to get more crowded next week, which has just two deals slated.
One is Audeo Oncology, which is a biotech company whose clinical-stage products aim to increase the effectiveness of anti-cancer drugs.
The other — which should garner more interest — is SolarCity, a top installer of solar systems for homes and businesses. It was co-founded by Elon Musk, who is the mastermind of breakout companies like SpaceX, Tesla (NASDAQ:TSLA) and eBay‘s (NASDAQ:EBAY) PayPal.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.