PennTex Midstream Partners (PTXP) Commences 11.25M Common Units IPO

PennTex Midstream Partners, LP (Nasdaq: PTXP) announced that it has commenced an initial public offering of 11,250,000 common units representing limited partner interests pursuant to a registration statement on Form S-1 previously filed with the U.S. Securities and Exchange Commission ("SEC"). The underwriters for the offering will be granted a 30-day option to purchase up to an additional 1,687,500 common units. The common units of PTXP will be listed on the NASDAQ Global Market under the symbol "PTXP."

PTXP is a growth-oriented master limited partnership formed by affiliates of Natural Gas Partners ("NGP") and members of management to own, operate, acquire and develop midstream energy infrastructure assets in North America. Following the offering, PTXP will provide natural gas gathering and processing and residue gas and natural gas liquids transportation services to producers in northern Louisiana, including to a subsidiary of Memorial Resource Development Corp., an NGP-affiliated independent natural gas and oil company focused on the development of liquids-rich natural gas opportunities in its Terryville Complex acreage.

The common units being offered to the public represent a 28.1% limited partner interest in the Partnership, or a 32.3% limited partner interest if the underwriters exercise their option to purchase additional common units in full. Following the offering, PennTex Midstream Partners, LLC ("PennTex Development") and MRD WHR LA Midstream LLC, an affiliate of NGP ("MRD WHR LA"), will own 40.4% and 27.0% of the limited partner interests in PTXP, respectively (or 37.8% and 25.4%, respectively, if the underwriters exercise in full their option to purchase additional common units). In addition, PennTex Development and MRD WHR LA will own 92.5% and 7.5% of the incentive distribution rights in PTXP, respectively, and a corresponding percentage of PTXP's general partner.

Citigroup, Barclays, RBC Capital Markets, Wells Fargo Securities, Deutsche Bank Securities, J.P. Morgan, SunTrust Robinson Humphrey and Tudor, Pickering, Holt & Co. are acting as book-running managers for the offering. Raymond James, Baird, Stifel and Wunderlich will act as co-managers for the offering.

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