FTS International Gears Up for IPO

Energy

Published: October 31, 2017 10:05 am

Last Updated: October 31, 2017 10:06 am

FTS International has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering. No pricing details were mentioned in the filing, but the offering is valued up to $100 million, although this number is normally just a placeholder. The company intends to list its shares on the New York Stock Exchange under the symbol FTSI.

The underwriters for the offering are Credit Suisse, Morgan Stanley, Barclays, Citigroup, Wells Fargo Securities, Evercore ISI, Cowen, Guggenheim, as well as Tudor, Pickering, Holt.

This is one of the largest providers of hydraulic fracturing services in North America. Its services enhance hydrocarbon flow from oil and natural gas wells drilled by exploration and production (E&P), companies in shale and other unconventional resource formations. Its customers include Chesapeake Energy, ConocoPhillips, Devon Energy, EOG Resources, Diamondback Energy, EQT, Range Resources and other leading E&P companies that specialize in unconventional oil and natural gas resources in North America.

FTS is one of the top three hydraulic fracturing providers across its operating footprint, which consists of five of the most active major unconventional basins in the United States: the Permian Basin, the SCOOP/STACK Formation, the Marcellus/Utica Shale, the Eagle Ford Shale and the Haynesville Shale.

In the filing the company further detailed:

We have 1.6 million total hydraulic horsepower across 32 total fleets, with 26 fleets active as of September 30, 2017. A surge in demand for our services has led us to activate nine fleets since the beginning of 2017. We are in the process of activating additional fleets based on continued customer interest and we believe all of this equipment can be returned to service within nine months, if market conditions require. We estimate the average cost to reactivate our inactive fleets to be approximately $4.8 million per fleet, which includes capital expenditures, repairs charged as operating expenses, labor costs and other operating expenses.

The company intends to use the net proceeds from this offering for general corporate purposes, which will include repaying indebtedness.

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