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Energy capital raises in 2018 approach $80B


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Energy capital raises in 2018 approach $80B

This Data Dispatch will be updated throughout 2018 to tally capital offerings in the U.S. energy industry. Click here for a spreadsheet listing all energy capital offerings since Nov. 4, 2009.

The U.S. energy industry aggregate year-to-date capital raised reached $79.91 billion as of Aug. 7, according to S&P Global Market Intelligence data. The total comprises $67.02 billion of senior debt, $6.27 billion of common equity, $5.43 billion of preferred equity, and $1.19 billion of subordinated debt.

By sector, power companies have raised $48.81 billion, midstream companies have raised $27.52 billion, and gas utilities have raised $3.59 billion, as of Aug. 7. Of the total common equity raises in 2018, energy companies raised $3.06 billion from 14 follow-on offerings, $2.24 billion from five private placement transactions and $940 million from 20 at-the-market transactions.

* Alliant Energy Corp. received $88 million in cash proceeds, as of June 30, from a common equity issuance as part of its up to $175 million at-the-market offering program, with proceeds to be used for general corporate purposes.

* DTE Energy Co. on Aug. 2 sold $600 million of 3.70% 2018-senior series D notes due Aug. 1, 2023. The company expects to use net proceeds to repay short-term borrowings and for general corporate purposes. Citigroup Global Markets Inc., JP Morgan Securities LLC, MUFG Securities Americas Inc. and Scotia Capital (USA) Inc. served as joint book-running managers.

* Diamondback Energy Inc subsidiary Viper Energy Partners LP on July 31 launched an offering of 9 million common units, with an option for an additional 1.08 million, at $31.25 per unit. The company said it expects gross proceeds of $281.3 million from the offer, before the overallotment. Proceeds will be used to purchase units of subsidiary Viper Energy Partners LLC. The subsidiary will then use the net proceeds to repay a portion of the outstanding borrowings under Viper's revolving credit facility. UBS Investment Bank and Credit Suisse are acting as joint book-running managers for the offering.

* PNM Resources Inc. subsidiary Public Service Co. of New Mexico on July 31 completed the sale of $85 million of 4.600% series H senior unsecured notes due Aug. 1, 2048, and $15 million of 3.780% series D senior unsecured notes, due Aug 1, 2028. The company will use the proceeds to repay an equal amount of PNM's 7.50% senior unsecured notes at their maturity Aug. 1.

* Williams Cos. Inc. in July contributed $35 million worth of its 35,000 shares of series B non-voting perpetual preferred stock to Williams Cos. Foundation Inc. for use in future charitable and non-profit causes.

* Southern California Edison Co. on July 30 completed the sale of $550 million of 4.125% series 2018C first and refunding mortgage bonds, due March 1, 2048, and $300 million of 3.700% series 2018-E first and refunding mortgage bonds, due Aug 1, 2025. Approximately $400 million of the net proceeds will be used to repay at maturity all of SCE's outstanding 5.50% series 2008-B first and refunding mortgage bonds, and the remainder to repay commercial paper borrowings and/or for general corporate purposes. Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Wells Fargo Securities LLC, TD Securities (USA) LLC and U.S. Bancorp Investments Inc. served as book managers.

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