Michael Fitzsimmons
Oil & gas, dividend investing, research analyst

Rice Midstream Partners: Water Services Drop-Down A Good Deal, But Falling Marcellus Production In Q4 Will Likely Offset Gains

Rice Midstream Partners (NYSE:RMP) is a fee-based, growth-oriented limited partnership formed by RICE Energy (NYSE:RICE) to own, operate, develop and acquire midstream assets in the Marcellus and Utica shale plays. Conservative financial stewardship combined with an advantageous drop-down transaction in November should support the current 8% yield. Prosperous activity in the Marcellus and Utica shale plays is a positive catalyst underlying distribution growth going forward. But that is longer term. In the short term, it appears a decrease in Q4 production expectations from GP RICE will largely offset the expected incremental EBITDA gains from the drop-down. For those investors picking through the MLP space for bargains, this small-cap ($646 million) LP deserves consideration. However, timing is

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