WildHorse Resource Development filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). The company noted in the filing that it expects to price its 27.5 million shares in the range of $19 to $21 per share, with an overallotment option for an additional 4.125 million shares. At the maximum price, the entire offering is valued up to $664.125 million. The company intends to list its shares on the New York Stock Exchange under the symbol WRD.
The company listed its underwriters for the offering as Barclays, Merrill Lynch, BMO Capital Markets, Citigroup, Wells Fargo, Guggenheim, JPMorgan, Raymond James, Simmons, Tudor Pickering Holt, Simons, Capital One, Comerica Securities, Scotia Howard Well and Wunderlich.
This is a growth-oriented, independent oil and natural gas company focused on the acquisition, exploitation, development and production of oil, natural gas and natural gas liquids resources. Its assets are characterized by concentrated acreage positions in Southeast Texas and North Louisiana, with multiple producing stratigraphic horizons, or stacked pay zones, and attractive single-well rates of return. In Southeast Texas, it operates in Burleson, Lee and Washington Counties, where it primarily targets the Eagle Ford Shale, which is one of the most active shale trends in North America. In North Louisiana, this company operates in and around the highly prolific Terryville Complex, where it primarily targets the overpressured Cotton Valley play.
WildHorse was formed by management and technical teams and affiliates of Natural Gas Partners, a family of energy-focused private equity investment funds. Prior to formation, the founding members of the management and technical teams successfully built and sold multiple NGP-sponsored oil and natural gas assets in and around the location of its acreage.
The company detailed in its filing:
Since we commenced operations in 2013, our management and technical teams have successfully executed our development program, growing our acreage position to approximately 375,000 net acres. We have also grown our production from 4.5 MBoe/d for the three months ended March 31, 2014 to approximately 14.0 MBoe/d for the three months ended September 30, 2016, representing a compound annual growth rate (“CAGR”) of approximately 57%, as described below, and our production for the three months ended September 30, 2016 was 17.9 MBoe/d after giving pro forma effect to the Acquisitions.
The company intends to use the net proceeds from the offering to fund the remaining portion of the Burleson North Acquisition purchase price, repay in full and terminate the WildHorse revolving credit facility and the Esquisto revolving credit facility and repay in full all notes payable by Esquisto to its members, and fund a portion of its drilling program. The remainder will be put toward working capital and general corporate purposes.
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
