Back to top

Analyst Blog

Access Midstream Partners, L.P. (ACMP - Snapshot Report) announced that it has priced $0.75 billion of 4.875% senior notes. The notes will mature in 2024. The partnership expects to close the note offering on Mar 7, 2014, subject to customary conditions. Initially, Access Midstream Partners had planned to offer senior notes worth $0.6 billion.

The partnership intends to utilize the net proceeds to repay borrowings under its revolving credit facility. Access Midstream Partners also plans to use the fund for general partnership functions, including working capital requirements, capital expenditure needs and acquisition program.

As on Mar 4, 2014, Access Midstream Partners’ debt-to-equity ratio was 74.6%. With the completion of the issue of senior notes, the partnership’s debt-to-equity ratio is expected to increase in the future.

Access Midstream Partners issues senior notes at regular intervals to refinance its existing debts and for other corporate purposes. On Aug 14, 2013, the partnership priced senior notes worth $0.4 billion. Access Midstream Partners utilized the net proceeds for several purposes like funding for working capital needs, repayment of debt and so on.

Apart from exercising external sources to accumulate funds, Access Midstream Partners continues to maximize its internal fund profile through driving operating efficiencies. In 2013, the partnership’s net cash from operating activities increased around 77% to $0.56 billion from the prior year.

The utilization of internal funds as well as external money allows Access Midstream Partners to expand its operations. On Feb 28, 2014, the partnership agreed to acquire some midstream compression assets from MidCon Compression, L.L.C, a subsidiary of Chesapeake Energy Corporation (CHK - Analyst Report), for $0.16 billion. In the long run, the strategic acquisition will enable the partnership to solidify its operations in the Utica Shale and Marcellus Shale regions, thereby meeting increased demand from upstream players.

Access Midstream Partners currently has a Zacks Rank #3 (Hold). However, some better-ranked stocks in the same industry include Magellan Midstream Partners LP (MMP - Analyst Report) and Spectra Energy Partners, LP (SEP - Snapshot Report), each carrying a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%