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Oil, gas capital raises in August: Totals climb after quiet July

Q2: U.S. Solar and Wind Power by the Numbers

Essential Energy Insights - September 17, 2020

Essential Energy Insights September 2020

Rate case activity slips, COVID-19 proceedings remain at the forefront in August


Oil, gas capital raises in August: Totals climb after quiet July

U.S. oil and gas companies covered by S&P Global Market Intelligence raised about $5.65 billion of capital in August, climbing from July's total of about $2.95 billion. Companies raised a combined $557.0 million from common equity offerings, roughly $3.69 billion through debt offerings, and $1.40 billion 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 $34.61 billion from January through August, compared to $27.97 billion raised in the comparable 2017 time period. Refining and marketing companies have raised $4.92 billion year-to-date, which is still behind the $6.39 billion raised in the same period of 2017. Oil and gas exploration and production companies raised $20.02 billion from the start of 2018 through August, behind the 2017 January-to-August total of $23.75 billion.

Common equity

* Amyris Inc. on Aug. 17 sold about $47.9 million of its common stock in follow-on equity offerings. The company sold 4,877,386 shares and another 2,776,762 on a separate offering, with both being priced at $6.25 per share.

* Carrizo Oil & Gas Inc. on Aug. 14 sold 9,500,000 common shares at $23 per share for proceeds of about $218.5 million in a public offering launched to fund its $215 million acquisition of Delaware Basin acreage from Devon Energy Corp. The company intends to use any remaining net proceeds for general corporate purposes such as future acquisitions or to help fund its 2018 CapEx plan. Pending these uses, Carrizo would use the proceeds to pay down revolver debt.

* PBF Energy Inc. on Aug. 10 sold 6,000,000 shares of class A common stock for total gross proceeds of about $291 million. The company expects to use the net proceeds of the offering to pursue strategic capital projects, including optimizing its ability to process heavy sour crude oil ahead of looming marine fuel sulfur regulations.

Debt

* Northwest Pipeline LLC, a Williams Cos. Inc. subsidiary, on Aug. 21 sold $246.4 million of its 4% senior unsecured notes due April 1, 2027, with interest on the notes to be paid semiannually. The company will use the proceeds to repay the intercompany debt owed to Williams in connection with the repayment of Northwest's 6.05% senior notes at their maturity June 15 and for general corporate purposes.

* Apache Corp. on Aug. 14 sold about $1.0 billion of its 4.375% notes due 2028 in an underwritten public offering. The company intends to use proceeds to help pay down senior debt from a tender offer for certain series of senior notes, with a combined maximum purchase price of $800.0 million, and for general corporate purposes.

* Denbury Resources Inc. on Aug. 14 sold $450 million of 7.5% senior secured second-lien notes due 2024 in a private offering. The company plans to use net proceeds to pay down borrowings under its bank credit facilities and for general corporate purposes.

* Matador Resources Co. on Aug. 7 sold $750 million of 5.875% senior unsecured notes due 2026 to yield about $740 million in net proceeds. The proceeds will be used to fund the company's offer to redeem any and all of its outstanding 6.875% senior unsecured notes due 2023

* Western Gas Partners LP on Aug. 7 sold about $750 million of its senior notes. The offering consisted of $400 million of the partnership's 4.75% senior notes due 2028 and $350 million of its 5.50% senior notes due 2048, offered at 99.818% and 98.912% of their face value, respectively. Western Gas Partners intends to use proceeds to repay its maturing 2.60% senior notes due 2018, pay down revolver debt and for general partnership purposes such as CapEx.

* SM Energy Co. on Aug. 6 sold $500 million of its 6.625% senior notes due 2027, with proceeds to be used to redeem any and all of its 6.500% senior notes due 2023 and up to $85 million of its 6.125% senior notes due 2022. Any remaining proceeds will be used for general corporate purposes.

Joint venture/private equity

* Ascent Resources LLC on Aug. 31 received $575 million of equity funding, with proceeds planned to be used to help fund the company's acquisition of the joint venture interests of CNX Resources Corp. and Hess Corp. in Utica Shale holdings in Ohio.

* Texas South Energy Inc. on Aug. 29 closed a transaction to receive $717,000 in funding. The transaction included participation from 28 investors.

* W&T Offshore Inc. on Aug. 20 announced a private placement of common shares for about $361 million of gross proceeds, led by a HarbourVest Partners LLC-led entity. The transaction also included participation from the family office of company CEO Tracy Krohn.

* Saxet III Minerals LLC on Aug. 20 received $100 million in an equity round of funding led by Post Oak Energy Capital LP. The transaction also included participation from the management of the company.

* Venture Global LNG Inc. on Aug 20 received roughly $100 million in funding, with participation from five investors.

* Ascent Resources LLC on Aug. 17 closed a transaction to receive $82 million in funding. The company will issue common shares as part of the transaction, which included participation from 11 investors.

* Petrolia Energy Corp. on Aug. 17 received about $90,000 from a private placement of convertible promissory notes.

* Venture Global LNG Inc. on Aug. 16 received $160 million in a round of funding. The company plans to use proceeds for continued development for its proposed LNG export facility in Louisiana.

* PEDEVCO Corp. on Aug. 1 received $23.6 million from a private placement of convertible promissory notes.

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