48.2 F
Fort Worth
Wednesday, November 25, 2020
Banking Oil IPOs seen ready to bloom across U.S. as crude heads higher
Banking Oil IPOs seen ready to bloom across U.S. as crude heads higher

Oil IPOs seen ready to bloom across U.S. as crude heads higher

Other News

Closing prices for crude oil, gold and other commodities

The Associated Press Benchmark U.S. crude oil for September delivery rose 31 cents to settle at $41.60 a barrel Monday. Brent crude oil for...

Trump to discuss energy, tour oil rig, raise money in Texas

By DARLENE SUPERVILLE Associated PressWASHINGTON (AP) — President Donald Trump will shift his focus to American energy dominance during a stop in Texas later...

Basic Energy Services makes organizational changes

Fort Worth-based Basic Energy Services, Inc. (OTCQX: BASX) in late May announced the implementation of changes to the organizational structure of the company, reducing...

Texas oil producers were cutting output before Railroad Commission chose not to, Commissioner Christi Craddick says

By Cassandra PollockMay 12, 2020 Texas Railroad Commissioner Christi Craddick on Tuesday doubled down on the agency’s recent decision to not cut oil production and...

It may be time for a baby boom in U.S. oil.

Rising crude prices and a deregulatory push in Washington may spur as many as 40 companies to hold initial public offerings over the next two years, potentially tripling 2016’s activity, according to Maynard Holt, chief executive officer at Houston-based investment bank Tudor Pickering Holt & Co.

After a year in which explorers in the Permian shale basin straddling Texas and New Mexico dominated the business, interest in new oil-industry offerings is likely to spread wider. It could include pipeline operators and regions like the Bakken in North Dakota and Wyoming’s Powder River basin, Holt said in a telephone interview Wednesday. Mergers and acquisitions should pick up as well.

“The number of companies expressing interest in going into this window is really high, and the number of investors saying we’d like to see something different is really high,” the CEO said.

After two years of crashing crude prices, the number of North American IPOs for oil and natural gas companies fell to 13 this year, worth a collective $2.23 billion, according to data compiled by Bloomberg. That was down from 44 announced offerings, worth $14.15 billion, in 2014, when oil topped $100 a barrel.

The environment has become more welcoming after the Organization of Petroleum Exporting Countries agreed last month to cut output, paving the way for higher prices. President-elect Donald Trump’s promise to ease regulations on the sector is helping as well, Holt said. Investors are especially hungry for new opportunities among “midsize” companies — those valued between $2 billion and $4 billion — with relatively little debt and exposure beyond the Permian, he said.

Oilfield service companies are still struggling financially, but that could lead to more deals as well, according to Holt.

“It feels like we’ve entered a good window where OPEC is now being cooperative, the regulatory talk feels positive and the financing markets feel open,” he said. “You could see a lot of capital raising in that window.”

Tudor Pickering ranked 13th among advisers this year on oil IPOs, assisting on four offerings, according to Bloomberg data. The bank, which focuses on energy deals, was bought in November by New York-based Perella Weinberg Partners.


close






Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.

Latest News

Fort Worth firm acquired by Abilene-based Petrosmith

Abilene-based Petrosmith, a leading provider of production equipment and oilfield tubular goods, has acquired the assets of Wellflex Energy Solutions LLC, an engineering, procurement...

Stocks edge higher on Wall Street on latest vaccine hopes

NEW YORK (AP) — U.S. stocks edged higher in morning trading Monday after investors received several pieces of encouraging news on COVID-19 vaccines and...

Mnuchin denies he’s trying to hinder incoming administration

WASHINGTON (AP) — Treasury Secretary Steven Mnuchin denied that he is attempting to limit the choices President-elect Joe Biden will have to promote an...

Bank of America announces $2.65 million jobs initiative for Texas Black and Hispanic-Latino students

Bank of America announced a new multimillion dollar jobs initiative Nov. 19 to help students of color complete the education and training necessary to...

Oil companies snag Gulf of Mexico waters for offshore drilling in last bid before Biden transition

In the last opportunity for oil companies to bid on federal Gulf of Mexico waters under a Trump administration, the federal government on Wednesday...