New organizational structure
Rice Midstream Partners is a subsidiary of Rice Energy, which is a component of several energy ETFs, including the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), the Vanguard Energy ETF (VDE), and the Vanguard Total World Stock Index Fund (VT).
Rice Energy owns 100% of the equity interests of Rice Energy Appalachia (or REA), which in turn holds 100% of the equity interests of Rice Midstream Holdings. Rice Midstream Holdings has limited partner interests in Rice Midstream Partners (RMP) and is also the general partner of the partnership. It also owns the partnership’s incentive distribution rights.
Rice Midstream’s future plans
Net proceeds of the IPO after the sale of 28,750,000 common units was approximately $441.6 million.
Rice Midstream noted in a press release that it intends to “make a $413.9 million distribution to Rice Energy, including a $195.3 million reimbursement for capital expenditures incurred on Rice Midstream’s behalf, to fund $25.0 million of Rice Midstream’s 2015 expansion capital expenditures, and to pay approximately $2.7 million of origination fees related to Rice Midstream’s new revolving credit facility.”
The following part talks about the midstream assets that Rice Midstream Partners will acquire.