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Oil, gas capital raises in September: Chesapeake brings in $1.3B to tackle debt


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Oil, gas capital raises in September: Chesapeake brings in $1.3B to tackle debt

U.S. oil and gas companies covered by S&P Global Market Intelligence raised about $5.75 billion of capital in September, up from August's total of about $5.65 billion. Companies raised a combined $94.5 million from common equity offerings, roughly $4.94 billion through debt offerings, and $716.8 million from joint venture and private equity deals.

Integrated oil and gas companies have raised almost $1.0 billion since January, down from $4.0 billion in the same period in 2017. Oil and gas storage and transportation companies raised $36.81 billion from the start of the year through September, compared to $34.29 billion raised in the same period in 2017. Refining and marketing companies have raised $4.92 billion year-to-date, which is still lagging behind $6.79 billion of capital raised in the same period last year. Oil and gas exploration and production companies raised $23.33 billion from in the January-to-September period, which fell further behind the $31.38 billion raised within the same time frame in 2017.

Common equity

* Kimbell Royalty Partners LP on Sept. 27 sold 3,000,000 of its old common units to gross about $57 million. The partnership plans to use proceeds from the offering to fund potential acquisitions and to repay debt.

* Rosehill Resources Inc. on Sept. 27 sold 6,150,000 of its class A common stock at $6.10 apiece, to gross about $37.5 million. The company plans to use all of the net proceeds from the offering, expected at $35.6 million, for contributions to Rosehill Operating Co. LLC in exchange for 6,150,000 of the operating company's common stock.


* Vine Oil & Gas LP on Sept. 28 sold $380 million of its senior unsecured notes due 2023 in a private offering, which was upsized from the original $350 million offering. The notes, priced at par, would mature April 15, 2023, and will pay interest at a 9.75% annual rate. The offering is expected to close Oct. 3.

* Ascent Resources Utica Holdings LLC on Sept. 26 sold $600 million of its 7.00% senior unsecured notes due 2026 priced at 99.236% of par. Ascent plans to use proceeds from the offering to fund the redemption of $525 million of its existing 10.00% senior unsecured notes due 2022 at a price of 110.00% of the 2022 notes.

* Chesapeake Energy Corp. on Sept. 25 sold $1.25 billion of its senior notes, which includes $850 million of 7% senior notes due 2024 and $400 million of 7.5% senior notes due 2026.

* Tallgrass Energy LP subsidiaries Tallgrass Energy Partners LP and Tallgrass Energy Finance Corp. on Sept. 24 sold $500 million of its 4.75% senior unsecured notes due 2023 at 100% of par. The offering was also upsized from the previously announced $400 million senior notes offering. Tallgrass Energy Partners intends to use the proceeds to repay outstanding debt under its senior secured revolving credit facility.

* Exploration and production company Northern Oil and Gas Inc. on Sept. 21 sold $350 million of its 8.5% senior secured second lien notes due May 15, 2023, to gross $364 million on gross proceeds-per-debt of $104.

* Diamondback Energy Inc. on Sept. 18 sold $750 million of its 4.750% senior notes due 2024, which was priced at 99.75% of the notes' principal amount. The company intends to use proceeds from the offering to pay down revolver debt and for general corporate purposes, which may include adding funds for its Ajax Resources LLC acquisition.

Joint venture/private equity

* Piedra Resources LLC on Sept. 27 received an equity round of funding. The transaction included participation from EnCap Investments LP.

* Camber Energy Inc. on Sept. 27 received roughly $16 million in funding from Discover Growth Fund. Camber issued 1,683 series C preferred stock for gross proceeds of about $16 million as part of the deal.

* Fulcrum BioEnergy Inc. on Sept. 19 announced it will receive a round of equity funding from Marubeni Corp. on Sept. 20.

* MMEX Resources Corp. on Sept. 13 sold $500,000 through a private placement of a 12% convertible note, and $100,000 though a 10% convertible note.

* Eckard Global LLC on Sept. 7 received $10,000 in funding from one investor.

* XCL Resources LLC on Sept. 6 received funding from new investor EnCap Investments LP.

* Empire Petroleum Corp. on Sept 5 completed a private placement for 1,016,667 shares at 15 cents per share for gross proceeds of $152,500.

* Flywheel Energy LLC on Sept 4 received $700 million in an equity round of funding, which included participation from Kayne Anderson Energy Income Fund.

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