Rattler Midstream LP

Form S-1 Rattler Midstream

Weekend reader.  Diamonback ($FANG) is spinning out Rattler to further its focus as a pure play E&P.  Rattler will be the closest thing the public markets have to a pure play water business.

Proforma top line of $185MM.  Net income of $56MM.  Left side of balance sheet expected to be $900MM.   $56MM/$900MM = 6.2% ROA.

What’s the multiple?


One thought on “Rattler Midstream LP

  1. Was reading …

    ” As of January 1, 2019, we have a total of 746 miles of pipelines across the Midland and Delaware Basins with a total of approximately 232,000 Bbl/d of crude oil gathering capacity, 53,500 Mcf/d of natural gas compression capability, 342,000 Mcf/d of natural gas gathering capacity, 2.685 MMBbl/d of SWD capacity and 550,000 Bbl/d of fresh water gathering capacity, all located in what we believe is the core of the Midland and Delaware Basins of the Permian and overlaying Diamondback’s seven core development areas.”

    And just thinking it would be nice to get this kind of reporting on TPL water division. I am fascinated by the potential but feel blind by very little information on the plans, capabilities etc.

    Anyways, nice find. Good read. Always interested in others observations.

    Liked by 2 people

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