Oil, gas capital raises in August: Sector raised $10.36B driven by debt deals

US and Canadian oil and natural gas companies covered by S&P Global Market Intelligence raised about $10.36 billion of capital in August, a sharp increase from the $349.4 million raised in July.

The sector completed seven common equity offerings, one preferred equity offering and 12 debt offerings in August. Debt offerings accounted for nearly $10 billion of the total capital raised, according to Market Intelligence data.

All segments notch YOY gains

All three covered oil and gas segments recorded year-over-year increases in capital raised in the first eight months of 2023. The storage and transportation segment raised $29.07 billion, an $11.27 billion increase from the amount raised in the same time frame in 2022. Exploration and production companies raised $13.91 billion, a little over 31% higher year over year. Refining and marketing companies raised $7.22 billion, over five times the year-ago level.

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Largest debt offerings in August

For debt offerings, ONEOK Inc. issued the most by value and number of all tracked companies in August, with $5.25 billion in total from five offerings. The gas company issued $1.75 billion of 6.625% senior notes due 2053, $1.50 billion of 6.05% senior notes due 2033, $500 million of 5.80% senior notes due 2030, $750 million of 5.650% senior notes due 2028, and $750 million of 5.550% senior notes due 2026.

ONEOK planned to use the proceeds to fund the cash consideration of its $18.8 billion acquisition of Magellan Midstream Partners LP and other merger-related costs.

ConocoPhillips had three debt offerings totaling $2.7 billion. The oil and gas producer issued $1 billion of 5.05% notes due 2033, $1 billion of 5.55% notes due 2054, and $700 million of 5.70% notes due 2063. It planned to use the proceeds to fund its purchase of the remaining 50% interest in the Surmont oil sands project in Alberta and for general corporate purposes.

Williams Cos. Inc. had two debt offerings amounting to $1.25 billion in total. The company issued $350 million of 5.40% senior notes due 2026 and $900 million of 5.30% senior notes due 2028. Williams will use the net proceeds for general corporate purposes.

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