Why EnLink Midstream Partners (ENLK) Is Slipping on Friday

NEW YORK (TheStreet) -- EnLink Midstream Partners (ENLK) is slipping on Friday after pricing its secondary offering of common stock.

By market open, shares had taken off 5.4% to $30.40.

The natural gas producer announced an underwritten secondary offering of 17.99 million common units representing limited partner interests owned by GSO Crosstex Holdings and a number of its affiliates.

Total gross proceeds of the offering will amount to around $550 million. EnLink will receive none of the proceeds from the offering and the total number of its outstanding common units will remain unchanged.

The offering is expected to close around March 26, pursuant to closing conditions.

Citigroup is the sole underwriter of the offering.

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TheStreet Ratings team rates ENLINK MIDSTREAM PARTNERS LP as a Buy with a ratings score of B-. The team has this to say about their recommendation:

"We rate ENLINK MIDSTREAM PARTNERS LP (ENLK) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins."

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