Two Energy IPOs: El Paso Pipeline Partners, EnergySolutions

There are two energy IPOs on deck for this week: El Paso Pipeline Partners (EPB), a limited partnership formed by El Paso Corporation that owns and operated natural gas transportation pipelines and storage facilities; EnergySolutions (ES) a provider of specialized, technology-based nuclear services to government and commercial customers.

All quotations are from the companies' most recent S-1 filings with links provide

EL PASO PIPELINE PARTNERS (EPB)
Business Overview (from prospectus)

We are a growth-oriented Delaware limited partnership formed by El Paso Corporation to own and operate natural gas transportation pipelines, storage and other midstream assets. Our initial assets consist of Wyoming Interstate Company, Ltd., or WIC, a wholly-owned interstate pipeline transportation business primarily located in Wyoming and Colorado and 10% general partner interests in two interstate pipeline transportation businesses: Colorado Interstate Gas Company, or CIG, which is located in the U.S. Rocky Mountains, and Southern Natural Gas Company, or SNG, which is located in the southeastern United States. Combined, these three interstate pipeline businesses consist of approximately 12,300 miles of pipeline and associated storage facilities with an aggregate underground working natural gas storage capacity of 89 Bcf. References to “we” and “our” refer to the operations of 100% of WIC, as well as our 10% general partner interests in CIG and SNG. El Paso operates and owns the remaining 90% general partner interests.

Offering: 25.0 million shares at $19.00 - $21.00 per share. Net proceeds of approximately $470 million for debt repayment and cash distribution to parent company.

Lead Underwriters: Lehman Brothers, Citi, Goldman Sachs

Financial Highlights:

EBIT for the year ended December 31, 2006 was $71 million and for the nine month period ended September 30, 2007 was $52 million. Operating revenues 2005: $81 million vs. operating revenues 2006: $97 million; Operating expenses 2005: $(43) million vs. operating expenses 2006: $(30) million.

Additional Resources:

• Online road show
• Press Release: 'El Paso Pipeline Partners Launches IPO'
• AP: 'El Paso: Pipeline, Drilling to Grow'

ENERGYSOLUTIONS (ES)
Business Overview (from prospectus)

We are a leading provider of specialized, technology-based nuclear services to government and commercial customers. Our customers rely on our expertise to address their needs throughout the lifecycle of their nuclear operations. Our broad range of nuclear services includes engineering, operation of nuclear reactors, in-plant support services, spent nuclear fuel management, decontamination and decommissioning, logistics, transportation, processing and disposal. We also own and operate strategic facilities that complement our services and uniquely position us to provide a single-source solution to our customers.

Offering: 30.0 million shares at $19.00 - $21.00 per share. Net proceeds of approximately $213.1 million will be used to repay debt.

Lead Underwriters: Credit Suisse, J.P. Morgan, Morgan Stanley

Financial Highlights:

Our revenues were $427.1 million for the year ended December 31, 2006 compared to $348.2 million for the eleven months ended December 31, 2005 and $21.9 million for the one month ended January 31, 2005 for pro forma revenues of $370.1 million for the year ended December 31, 2005... Cost of revenues was $235.9 million for the year ended December 31, 2006 compared to $134.4 million for the eleven months ended December 31, 2005 and $7.4 million for the one month ended January 1, 2005 for pro forma cost of revenues of $141.7 million for the year ended December 31, 2005... Gross profit was $191.2 million for the year ended December 31, 2006 compared to $213.8 million for the eleven months ended December 31, 2005 and $14.5 million for the one month ended January 1, 2005 for pro forma gross profit of $228.4 million for the year ended December 31, 2005. Our gross margin decreased to 44.8% in 2006 from 61.7% in 2005... For the foregoing reasons, net income was $26.9 million for the year ended December 31, 2006 compared to $118.0 million for the eleven months ended December 31, 2005 and $13.6 million for the one month ended January 31, 2005.

Additional Resources:

• Company website
• Online road show
• AP: 'EnergySolutions files for NYSE IPO worth up to $500M'
• The Salt Lake Tribune: 'EnergySolutions details IPO'