Oil, gas capital raises in October: Total capital collected drops to $7.19B

U.S. and Canadian oil and gas companies covered by S&P Global Market Intelligence raised approximately $7.19 billion of capital in October, a decline from the $8.47 billion of capital recorded in September. Debt deals contributed the most with roughly $6.09 billion, while common stock offerings and private placements collected a combined amount of $1.10 billion.

Through October, most of the represented oil and gas sectors raised lower capital compared to the same period a year earlier. Oil and gas storage and transportation companies pulled in $29.43 billion, while oil and gas refining and marketing companies collected $10.63 billion. Integrated oil and gas companies were able to boost capital collected through the month to $2.41 billion. Once again, only the oil and gas exploration and production companies were able to report a yearly increase in capital after raking in $32.83 billion, versus last year's $19.22 billion.

Common stock

* CGX Energy Inc. on Oct. 28 sold 45,151,419 common shares for proceeds $59.7 million, which the company will use for working capital and general corporate purposes.

* Topaz Energy Corp. on Oct. 26 sold 10,120,000 common shares for $139.8 million. The corporation plans to use the deal's proceeds for acquisitions and investments and working capital.

* Arrow Exploration Corp. on Oct. 25 sold 209,624,147 common shares for proceeds of $105.9 million, which will be used for working capital.

* HighPeak Energy Inc. on Oct. 20 sold 2,530,000 common shares for gross proceeds of $25.3 million, which the company intends to use for working capital, investment in securities and general corporate purposes.

* Headwater Exploration Inc., through Cenovus Energy Inc. as the selling shareholder, on Oct. 14 sold 45,000,000 common shares for $183.9 million. Headwater initially issued the sold common shares to Cenovus as partial consideration for the acquisition of Cenovus' assets in Marten Hills in Alberta. Cenovus' sale of the common shares is part of its plan to bring down its net debt levels to its C$10 billion interim goal and speed up shareholder returns.

* Kosmos Energy Ltd. on Oct. 14 sold 43,125,000 common shares, including overallotment, for $3.30 per share for proceeds of $142.3 million. Kosmos Energy said it plans to use the deal's proceeds to repay outstanding borrowings under its commercial debt facility, including borrowings intended to fund a part of the company's previously announced acquisition of Anadarko WCTP Co. from Occidental Petroleum Corp. for roughly $460 million.

* Hess Midstream LP on Oct. 6 sold 8,625,000 class A shares for gross proceeds of approximately $224.3 million.

* PEDEVCO Corp. on Oct. 6 sold 4,458,600 common stock for $7.0 million, which the corporation will use for acquisitions, working capital, investment in securities and general corporate purposes.

Debt

* Vertex Energy Inc. on Oct. 27 offered 6.25% convertible senior notes due October 2027 for $139.5 million. Vertex Energy will use the offering's net proceeds to finance a portion of the funds payable in relation to the company's pending acquisition of a refinery in Mobile, Ala.; to repay outstanding amounts under its credit facilities; and for certain engineering services and for initial payments of purchase orders for equipment, among others.

* Kinder Morgan Inc. on Oct. 26 issued 1.75% senior unsubordinated unsecured notes due November 2026 for proceeds of $499.1 million, which the company intends to use for the redemption or repayment of debt securities, working capital and general corporate purposes. Interest on the notes is payable every May 15 and Sept. 15, starting May 15, 2022.

* Athabasca Oil Corp. on Oct. 25 sold $350.0 million of 9.75% senior secured second-lien notes due 2026. The corporation will use the proceeds from the transaction to repay debt.

* Kosmos Energy on Oct. 21 also offered 7.750% senior notes due 2027 for $400.0 million. Kosmos Energy will also use the proceeds, along with cash on hand, to refinance the $400 million of private placement notes the company issued to fund its Anadarko WCTP acquisition.

* TransCanada PipeLines Ltd. on Oct. 7 issued approximately $1.25 billion of 1% senior notes due October 2024 and $993.4 million of 2.5% senior notes due October 2031. Proceeds from the offerings will be used by TransCanada to reduce its short-term debt and for general corporate purposes.

* Sunoco LP on Oct. 5 sold $800.0 million of 4.5% senior notes due April 2030, the interest of which is payable every April 30 and Oct. 30, starting on April 30, 2022. The partnership will use the deal's proceeds and cash on hand to fund the separately announced tender offer for its outstanding 5.500% senior notes due 2026 and the redemption of the 2026 notes.

* Williams Cos. Inc. on Oct. 5 offered $648.9 million of 3.5% senior notes due October 2051 and $605.8 million of 2.6% senior notes due March 2031. Net proceeds from the transactions will be allocated for the repayment of Williams' $1.25 billion of 2022 notes and for general corporate purposes.

* Civitas Resources Inc. on Oct. 5 issued 5% senior unsecured notes due 2026 for $400.0 million, which will be used for general corporate purposes and the redemption or repayment of debt securities.

Private placements

* Topaz Energy on Oct. 26 also completed a private placement of 251,490 common shares for gross proceeds of approximately $3.5 million.

* NG Energy International Corp. on Oct. 22 closed a nonbrokered private placement of 8,000,000 units for approximately $6.5 million. The proceeds from the deal, which included participation from six placees, will be used to speed up the corporation's exploration timeline in a particular area of the Lower Magdalena and San Jacinto basins.

* Razor Energy Corp. on Oct. 22 completed a private placement of up to 2,619,048 common shares for proceeds of approximately $1.8 million, which the corporation intends to use to continue its well reactivation program and for general corporate purposes.

* Bonterra Energy Corp. on Oct. 20 completed a brokered private placement debt financing comprising 32,000 units for $26.0 million. The company plans to use the net proceeds from the transaction to pay down existing bank debt and for general corporate purposes.

* Tenaz Energy Corp., previously known as Altura Energy Inc., on Oct. 8 secured proceeds of $23.7 million during a non-brokered private placement of units and a brokered private placement of subscription receipts. The corporation will use the proceeds for general corporate purposes and to partially finance the acquisition of global oil and gas assets.

* Azul Resources LLC on Oct. 6 raised an undisclosed amount of investment during an equity round of funding, which included participation from new investor, Carnelian Energy Capital III LP, which is a fund managed by Carnelian Energy Capital.

* Elk Range Royalties LP on Oct. 6 received an undisclosed amount of investment in equity funding from NGP Energy Capital Management LLC fund NGP Royalty Partners LP. Elk Range Royalties plans to use the investment for the acquisition of certain Permian Basin royalty interests.

* Vision RNG LLC on Oct. 4 secured $100.0 million in a round of funding. The company will use the deal's proceeds to produce renewable natural gas from landfills and to scale its business and for potential projects to develop other landfill gas systems.

*Rubellite Energy Inc. on Oct. 4 closed a private placement of subscription receipts and a non-brokered private placement of shares for gross proceeds of $50.0 million.