Vine Resources filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) in regards to its initial public offering (IPO). There were no pricing details mentioned in the filing. The company intends to list its shares on the NYSE under the symbol VRI.
The underwriters for the offering are Credit Suisse, Morgan Stanley, Barclays, Citigroup, HSBC, Blackstone Capital Markets, Goldman Sachs, Tudor Pickering Holt & Co., Evercore ISI, Jefferies, UBS Investment Bank, Natixis, Societe Generale, Macquarie Capital, and BTIG.
This is a pure play natural gas company focused solely on the development of natural gas properties in the stacked Haynesville and Mid-Bossier shale plays in the Haynesville Basin of Northwest Louisiana. It has approximately 95,000 net surface acres centered in what management believes to be the core of the Haynesville and Mid-Bossier plays as of the end of 2016.
Approximately 90% of its acreage is held by production, providing it with the flexibility to control its development pace without the threat of lease expiration, and enabling it to capitalize on advancements in drilling and completion technologies and favorable natural gas price movements.
Its assets are located almost entirely in Red River, DeSoto and Sabine parishes of Northwest Louisiana, which according to RS Energy Group, have consistently demonstrated higher EURs relative to D&C costs than the Haynesville and Mid-Bossier plays in Texas and other parishes in Louisiana.
Over 60% of this acreage is prospective for dual-zone development, providing it with more than 1,700 identified drilling locations. Utilizing eight gross rigs and assuming six wells per 640-acre section, management believes that it has over 20 years of organic development opportunities.
The company intends to use the net proceeds from this offering to repay its indebtedness as well as for working capital and general corporate purposes.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
