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Niska Gas Storage Partners LLC (NKA) |
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
Niska Gas Storage Partners LLC (NKA) (NYSE:NKA) is the largest independent operator of natural gas storage assets in North America. The company has 185.5 Bcf (billion cubic feet) of storage for natural gas. Since its founding in 2006, the company has added 41.3 Bcf in storage space, a 29% increase. The supply of natural gas is relatively steady, however the demand for natural gas fluctuates. Therefore, there is a need to store the excess natural gas in slow periods, while taking it out of storage in periods of strong demand. Niskas Gas Storage offers contracts to allow its customers inject and withdraw their natural gas. The contract ranges from 1.0 to 6.0 cycles with an average of 2.2. [1]
The company offers two contracts. Long term contracts are contracts longer than 1 year, and short term contracts are contracts less than 1 year. The company also trades its own natural gas and accounts for it in net optimization revenue. Natural gas storage companies are capital intensive, requiring equity or debt financing to expand. If the economic conditions are not favorable, the company may not be able to expand its operation in order to create new storage space for new or existing customers. [1]
The company's initial public offering of stock filed on the NASDAQ exchange and went public on 11 May 2010. The stock was priced at $20.50, within the price range of $20.00 - $22.00. The company sold 17.5 million shares to raise $359 million. [1]
For the nine months ended 31 December 2009, the company reported total revenue of $149.7 million, down 29.3% from $211.6 million in total revenue for the nine months ended 31 December 2008. Furthermore, the company had net income of $3.2 million for the nine months ended 31 December 2009, down from $100.8 million in net income for the nine months ended 31 December 2008. The revenue is distributed with 55% in long-term contract revenue, 27% in short-term contract revenue, and 19% in net optimization revenue. [1]
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