Fort Worth fracking firm begins trading on the NYSE

FTS International Inc. announced Friday, Feb. 2 the pricing of an upsized initial public offering of 19.5 million shares of common stock at a price to the public of $18 per share, of which 15.2 million shares will be sold by FTSI and 4.4 million shares will be sold by the selling stockholder named in the registration statement relating to the offering. The $18 price is at the high end of the range, according to the company’s initial public offering statement to the SEC.

The company intends to use the net proceeds from this offering for general corporate purposes, which will include repaying indebtedness. Along with its headquarters at 777 Main in Fort Worth, the company has a manufacturing plant on the city’s west side.

The company said in an earlier SEC filing that it has seen increased demand for its service: “We have 1.6 million total hydraulic horsepower across 32 fleets, with 27 fleets active as of January 8, 2018. We are experiencing a surge in demand for our services, which has led us to reactivate 10 fleets since the beginning of 2017. Based on continued requests from customers for additional fleets, we are in the process of reactivating additional equipment at our in-house manufacturing facility. We believe we can reactivate all of our idle equipment for approximately $34 million, allowing us to further increase our operating fleets by five fleets, or approximately 19 percent, over the next nine months.”

In the filing, the company reported $1.2 billion in sales for the 12 months ended Sept. 30, 2017. The company’s stock will trade on the New York Stock Exchange under the FTSI symbol.

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FTS International is one of the largest providers of hydraulic fracturing services in North America. The company’s services enhance hydrocarbon flow from oil and natural gas wells drilled by exploration and production, or E&P, companies in shale and other unconventional resource formations. According to the company’s Securities and Exchange Commission filing, customers include Chesapeake Energy, ConocoPhillips, Devon Energy, EOG Resources, Diamondback Energy, EQT, Range Resources and other companies that specialize in unconventional oil and natural gas resources in North America. In the filing, FTS said fourth quarter 2017 revenues are expected to be approximately $459 million.

FTS is active in five of the most active major unconventional basins in the United States: the Permian Basin, the SCOOP/STACK Formation, the Marcellus/Utica Shale, the Eagle Ford Shale and the Haynesville Shale.

Credit Suisse and Morgan Stanley are acting as the book-running managers. Wells Fargo Securities; Barclays; Citigroup; and Evercore ISI are also acting as book-runners. Guggenheim Securities; Simmons & Company International, Energy Specialists of Piper Jaffray; Tudor, Pickering, Holt & Co.; and Cowen are acting as co-managers.