IPO highlights investors’ US shale hesitancy
Vine Energy’s financing efforts reveal lingering public market doubts despite healthy prospects for gas
Last week’s initial public offering by US gas producer Vine Energy may have been the first of its kind in the shale patch for over four years. But it also served as an important litmus test for onshore investor confidence. The Haynesville pure-play producer, backed by private equity firm Blackstone, successfully raised $301mn through the sale of 21.5mn shares priced at $14 each. But the share price fell below the expected $16-19 range, forcing the company to offload another 2.8mn shares to break through the $300mn ceiling. “The somewhat muted interest shows investors are still cautious of the risks involved and focused on free cash flow (FCF), meaning other privates looking to an IPO, especi
Also in this section
26 April 2024
While the US has been breaking records for its premium grade crude, there are doubts over whether you can have too much of a good thing
26 April 2024
Slowing demand growth and capacity expansions will squeeze refiners in coming years
25 April 2024
Some companies with assets in Israel have turned towards Egypt as tensions escalate, but others are holding firm despite rising tensions
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields