Summary
- Rattler Midstream has filed proposed terms for its IPO of limited partnership units.
- The firm operates oil & gas gathering and takeaway assets in the Permian Basin for parent firm Diamondback Energy.
- RTLR has grown rapidly as Diamondback's need for its pipeline assets is strong.
- The firm aims to provide a distribution yield of 5.7% in the first year following the IPO; if it delivers, it may be enticing for IPO investors seeking yield.
- This idea was discussed in more depth with members of my private investing community, IPO Edge. Start your free trial today »
Quick Take
Rattler Midstream (RTLR) has filed to raise $583 million in an IPO of its common units, according to an amended registration statement.
The company is a midstream oil & gas gathering and takeaway master limited partnership operating in the Midland and Delaware Basins within the Permian Basin.
The IPO isn't cheap, although for dividend investors who are bullish on pipeline takeaway within the Permian and a favorable oil price environment, I can understand the bull case for firms such as Rattler.
