Twenty twelve was a big year for master limited partnership (MLP) initial public offerings (IPO). Fourteen new MLPs raised a total of USD4.9 billion, the biggest deal count and dollar amount in the sector since 2009.

The pace of MLP IPOs hasn’t slackened, as four more have taken place thus far in 2013, including three worth more than USD100 million. Sponsors continue to try to meet insatiable investor demand for yield, as we’re seeing more and more MLPs that operate in non-traditional industries.

Novelty, in and of itself, is no guarantee of success in the marketplace. But SunCoke Energy Partners (NYSE: SXCP), the first publicly traded partnership from the coke-producing industry, has outperformed the S&P 500 Index and the Alerian MLP Index since it began trading on the New York Stock Exchange (NYSE) on Jan. 18, 2013, with a price-only gain of 10.5 percent.

The S&P, meanwhile, is up 6.5 percent, the MLP benchmark 10.3 percent. SunCoke Energy Partners also posted solid fourth-quarter and full-year financial and operating results for its “predecessor” for 2012.

The MLP is sponsored by SunCoke Energy Inc (NYSE: SXC), the largest independent producer of metallurgical coke in the Americas. SunCoke Energy Partners’ operations include facilities that make coke for some of the largest blast furnace steelmakers in the US and around the world. The company touts the higher-quality coke as well as the energy generated from its advanced, heat recovery process.

It supplies coke primarily to AK Steel Holding Corp (NYSE: AKS) and ArcelorMittal SA (Amsterdam: MT, NYSE: MT) under long-term contracts. The MLP owns a 65 percent interest in each of SunCoke Energy Inc’s Haverhill and Middletown coke-making facilities.

Coke production from Haverhill and Middletown was up by 85,000 tons in the fourth quarter and by 574,000 tons for 2012, driven by the latter facility, which came on line in October 2011. Capacity utilization was better than 100 percent for both the fourth quarter and for the full year.

Fourth-quarter revenue rose by 32.9 percent to USD186.2 million, while full-year revenue surged by 64.6 percent to USD740.2 million. Fourth-quarter operating income nearly tripled to USD24.8 million, as the 2012 figure grew by USD53.2 million to USD91.5 million.

Management reported that net income more than doubled to USD15.3 million during the final three months of the year, while 2012 net increased by 84.4 percent to USD56.8 million.

SunCoke Energy Partners, on the strength of fourth-quarter numbers, reaffirmed its plan to begin paying distributions as of the first quarter of 2013. In its final amended S-1 registration statement management indicated it plans to distribute USD1.65 per unit on an annualized basis, or USD0.4125 per unit per quarter.

We initiate coverage of SunCoke Energy Partners with a hold rating.

USA Compression Partners LP (NYSE: USAC) has the distinction of being the first US IPO of 2013. The MLP, which provides natural gas compression services to customers throughout the US, hit an intraday post-IPO high of USD20.83 on April 2 before closing at USD20. It’s up about 11 percent since its Jan. 15 debut on the NYSE.

USA Compression’s services include engineering, designing, operating, servicing and repairing compressor units. According to management, demand is driven by activity in major shale plays, including the Fayetteville, Marcellus, Woodford, Barnett, Eagle Ford and Haynesville.

Management plans to spend USD94 million in 2013 on growth initiatives. As of late February the MLP had placed orders for approximately 87,000 horsepower of compression capacity for delivery during the first half of the year; customer contracts have been secured for 51.7 percent of this capacity. Full-year guidance assumes the addition of about 100,000 of total compression unit horsepower.

It takes about four to six months from order to delivery for a new compression unit. Management’s goal is to have signed customer agreements before or within one to two months of receiving new units.

Management reported solid fourth-quarter and full-year 2012 results in late February, as the MLP achieved company-record revenue for both marking periods and record earnings before interest, taxation, depreciation and amortization (EBITDA) for the full year.

Contract operations revenue grew by 23.7 percent during the last three months of 2012 compared to the fourth quarter of 2011, while gross operating margin as a percentage of revenue improved from 59.3 percent to 68.9 percent.

Distributable cash flow for the fourth quarter was USD9.2 million, up from USD5.9 million a year ago, while for 2012 it was USD34.9 million, up from USD22.8 million in 2011.

Total fleet horsepower increased by 27.3 percent from the end of 2011 to the end of 2012.

Management reiterated full-year 2013 guidance for revenue, net income and adjusted EBITDA of USD145.4 million, USD19.9 million and USD82.1 million, respectively, and expects to generate distributable cash flow of USD56 million for the year.

One point of concern for USA Compression is its debt level. Management used the USD180.8 million proceeds from its IPO to pay down the outstanding balance on its USD600 million revolving credit facility. This facility, which will mature in October 2015, as of Dec. 31, 2012, had USD321.5 million outstanding versus USA Compression’s market capitalization of USD301 million.

Management will declare its first distribution–forecast to be USD0.425 per unit, or USD1.70 per unit on an annualized basis–when it reports first-quarter numbers on or about May 24, 2013.

As is the case with SunCoke Energy Partners and all the “New Prospects” included in our table, we initiate coverage of USA Compression Partners with a hold rating.

The largest and best-performing MLP IPO thus far in 2013 belongs to CVR Refining Partners LP (NYSE: CVRR), which debuted on the NYSE on Jan. 17.

The units have surged 25.9 percent, driven since mid-March by management’s increase in full-year distribution guidance from USD4.72 per unit to a range of USD5.50 to USD6.50. Guidance for the first quarter distribution was raised from USD1.21 per unit to a range of USD1.30 to USD1.55.

The midpoint of the new guidance range represents a yield of 19.1 percent based on the April 2, 2013, closing price of USD31.47 per unit.

Net income for 2012 was USD595.3 million on net sales of USD8.282 billion, up from USD480.3 million and USD4.753 billion, respectively, in 2011. Management reported 2012 adjusted EBITDA of USD1.176 billion, up from USD577.3 million in 2011. Operating income for 2012 was USD993.9 million, up from USD456.7 million for 2011.

Fourth-quarter net was USD54.6 million on net sales of USD1.816 billion, up from net of USD77.5 million on sales of USD979.5 million a year ago. Adjusted EBITDA was USD196.2 million for the quarter, up from USD44.3 million. Fourth-quarter operating income was USD120.4 million, up from an operating loss of USD11.8 million for the prior corresponding period.

CVR, which refines and markets petroleum fuels and also has a crude-oil gathering unit, benefitted from strong crack-spreads, access to price-advantaged crudes and high operating throughputs at its refineries. The crude-gathering business averaged of 50,000 barrels per day gathered during the quarter and 46,000 barrels per day for the year.

Fourth-quarter crude oil, feedstock and blendstock throughput was 162,603 barrels per day (bpd), compared to 97,630 bpd for the same period in 2011. Crude oil throughput for the fourth quarter 2012 averaged 147,815 bpd compared to 93,705 bpd for the same period in 2011.

Refining margin per crude oil throughput barrel was USD25.93 in the fourth quarter, up from USD11.05 during the prior corresponding period. Gross profit per crude oil throughput barrel was USD10.23, up from USD0.90.

Direct operating expenses, including major scheduled turnaround expenses, per barrel sold, exclusive of depreciation and amortization, for the quarter 2012 was USD11.29, down from USD12.53 a year ago.

It is management’s official policy to pay a variable distribution rate that will be adjusted up or down based on key metrics such as crack spreads and crude differentials. The actual rate will be declared within 60 days of the end of a given quarter. CVR will report first-quarter results on May 6, 2013.

CVR Refining Partners is a hold.

The table “New Prospects” includes seven MLPs that made their respective IPOs during the last three months of 2012, including Alon USA Partners LP (NYSE: ALDW), which was formed by Alon USA Energy Inc (NYSE: ALJ) to run the latter’s refining and petroleum products marketing business.

The MLP owns and operates a crude oil refinery in Big Spring, Texas, with total throughput capacity of approximately 70,000 bpd. It markets refined products primarily in West Texas, Central Texas, Oklahoma, New Mexico and Arizona through a wholesale distribution network to both Alon Energy’s retail convenience stores and other third-party distributors.

Alon USA Partners, which declared a pro-rated distribution for the fourth quarter of USD0.57 per unit, has posted a total return of 51.1 percent since its Nov. 19, 2012, IPO, versus gains of 14.2 percent for the S&P 500 and 18.2 percent for the Alerian MLP Index.

Delek Logistics Partners LP (NYSE: DKL) gathers, transport and stores crude oil and markets, distributes, transports and stores refined products in the Southeast and West Texas for Delek US Holdings and third parties.

The MLP’s Pipelines and Transportation segment consists of approximately 400 miles of crude oil pipelines, 16 miles of refined product pipelines, an approximately 600-mile crude oil gathering system and associated crude oil storage tanks with an aggregate of approximately 1.4 million barrels of active shell capacity.

The Wholesale Marketing and Terminalling Segment provides marketing services for 100 percent of the refined products output of Delek US Holdings’ Tyler refinery, other than jet fuel and petroleum coke, and owns and operates five light-product terminals.

Delek has posted impressive financial, operating and market results since its Nov. 2, 2012, debut on the NYSE. The MLP’s fourth-quarter and full-year 2012 numbers exceeded management guidance as well as analysts’ forecasts, and the units have generated a total return of 45.4 percent. Distribution coverage for the fourth quarter was 1.6 times.

Lehigh Gas Partners LP (NYSE: LGP) distributes fuel for motor vehicles through a network of approximately 800 gas stations in Pennsylvania, New Jersey, New York, Ohio, Kentucky, Massachusetts, Maine, New Hampshire and Florida.

Lehigh reported a pro forma net loss from continuing operations for the fourth quarter of USD1.1 million, or USD0.07 per unit. Pro forma EBITDA for the quarter was USD6.4 million and pro forma distributable cash flow was USD3.2 million, or USD0.21 per unit.

This includes USD7.7 million in expenses related to the IPO, which was completed in October 2012, and two acquisitions the MLP closed during the quarter.

The MLP paid a distribution of USD0.2948 per unit for the fourth quarter, which represents a prorated amount of its minimum quarterly distribution of USD0.4375 per unit per quarter, or USD1.75 per unit on an annualized basis.

MPLX LP (NYSE: MPLX) was formed by Marathon Petroleum Corp (NYSE: MPC) to own and operate crude oil and refined product pipelines and associated storage in the Midwest and Gulf Coast region. The MLP’s assets include a 962-mile crude oil pipeline system, 1,819 refined product pipeline system and storage facilities, which primarily serve Marathon’s refining activities.

Fourth-quarter results beat expectations, and management noted a solid pipeline of potential drop-downs from Marathon Petroleum during its conference call to discuss results. Management of Marathon, in fact, reiterated its plant for MPLX to serve as the primary growth vehicle for its midstream business.

The sponsor recently closed its acquisition of the BP Texas City refinery, which includes natural gas liquids (NGLs) pipelines and light-product terminalling facilities. Marathon Petroleum also committed to being the “anchor shipper” on Enbridge Inc’s (TSX: ENB, NYSE: ENB) 300,000 barrel per day Southern Access Extension, which provides it the option to acquire a 25 percent equity interest in the pipeline.

A growing pipeline of potential assets should enable MPLX to post solid distribution growth going forward, which is the major reason its units have surged by more than 70 percent–it’s the top performer among the 10 MLPs profiled here–since the IPO.

Seadrill Partners LLC (NYSE: SDLP), which is based in London and incorporated in the Marshall Islands, owns and operates offshore drilling rigs. It has interests in four drilling rigs, including two semi-submersibles, one drillship and one tender rig.

Seadrill Partners’ rigs are employed on long-term contracts to Super Oils such as Exxon Mobil Corp (NYSE: XOM), BP Plc (London: BP/, NYSE: BP), Total SA (France: FP, NYSE: TOT), and Chevron Corp (NYSE: CVX).

The MLP was formed by its sponsor Seadrill Ltd (NYSE: SDRL, Norway: SDRL), one of the largest offshore drilling rig owner-operators in the world. It completed its initial public offering on the NYSE on Oct. 18, 2012.

Seadrill Partners posted expectations-beating fourth-quarter distributable cash flow per unit of USD0.64, covering the full quarterly distribution (the MLP actually paid a pro-rated USD0.2906 per unit) of USD0.3875 by 1.7 times. Management cited lower-than-guidance interest expense as the key factor in the outperformance.

Management provided little commentary on near-term growth prospects, though it did highlight its commitment to double-digit distribution growth over. This will likely be driven in the intermediate term by the T-15 tender rig, which was delivered in December 2012 and will soon begin work on a five-year contract with Chevron.

Seadrill Partners units have enjoyed a healthy run since mid-October, posting a total return of 28.2 percent versus 8.9 percent for the S&P 500 and 12.8 percent for the Alerian MLP Index.

Southcross Energy Partners LP (NYSE: SXE) was formed by its management team along with private equity firm Charlesbank Capital Partners LLC to own and operate midstream assets. The MLP provides natural gas gathering, processing, treating and transportation services and NGLs fractionation and transportation services for customers in South Texas, Mississippi and Alabama.

Southcross is the only one of the 10 MLPs included in the “New Prospects” table to post a negative total return since its IPO, having generated a loss of 4 percent.

This is largely the result of a disappointing fourth-quarter financial and operating results report, in which management reduced both 2013 and long-term distribution growth guidance.

Notably, management cut its 2013 EBITDA and growth CAPEX guidance by 21 percent and 60 percent, respectively, due to operational start-up issues and a slower-than-expected ramp-up in Eagle Ford volumes because of increased competition. And a planned processing expansion has been delayed pending confirmation of sufficient demand for additional capacity.

Southcross closed as high as USD26.25 on the NYSE as recently as March 15. In the aftermath of its fourth-quarter report the units plumbed to post-IPO lows below USD19 and well illustrate the perils of jumping too early into new issues that haven’t established a track record of supporting distributions.

Western Gas Equity Partners LP (NYSE: WGP) is a general partner (GP) that owns 49.3 million common units of Western Gas Partners LP (NYSE: WES). This stake accounts for 62 percent of its cash flow. Incentive distribution rights (IDR) payments account for about 34 percent of cash flow.

Western Gas Equity’s cash flow rises when Western Gas Partners raises its distribution or issues new equity. Basically, growth prospects for the GP are supported by potential drop-down opportunities and organic growth initiatives at the underlying MLP.

And Western Gas Partners’ growth is supported by more than USD1.2 billion of midstream assets potentially available to it from its sponsor, Anadarko Petroleum Corp (NYSE: APC), as well as organic growth opportunities tied to Anadarko’s drilling activity.

This high-quality cash flow picture is the major reason Western Gas Equity Partners is up 58.1 percent since its December 2012 debut.