First E&P IPO In Two Years Went Live Today

The first oil and gas exploration and production company to undergo an initial public offering (IPO) in more than two years will see its stock exchange listing go live this week.

Extraction Oil and Gas – which will trade under the ticker symbol XOG – is looking to raise $550 million by selling 33.3 million shares between the price range of $15 and $18.

The first shares of the Denver-based company operating in the Denver-Jules Basin will be sold on Wednesday, after pricing is complete.

The last E&P to go public was Independence Contract Drilling (ICD) back in August of 2014.

Centennial Resource Production had been slated for a $100 million IPO in July, but Silver Run Acquisition Corporation bought it out before it went through.

Extraction’s IPO comes as oil prices hit one-year highs after the Organization of Petroleum Exporting Countries reached a soft agreement to cut production.

Last month, Noble Midstream Partners (NBLX), a pipeline and oil transit company that operates in the same basin as Extraction, became the first energy IPO of 2016.

Mammoth Energy Services, another oilfield service provider, will be offering 7.75 million shares between the range of $15-$18 this Friday. It aims to raise $128 million under the symbol TUSK on the Nasdaq.

Mammoth does its business in the Utica and Permian basins. The Permian basin in particular is known to hold plenty of low-cost oil production opportunities, prompting exploration companies to focus their efforts in the area.

Brigham Resources LLC is considering a sale of the company, while also planning an IPO next year. The four-year old company has quality assets in the white-hot Permian Basin and could be worth $2 billion.

By Zainab Calcuttawala for Oilprice.com

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