Sanchez Energy (SN), an independent explorer and producer of unconventional oil and natural gas properties in South Texas, raised $220 million by offering 10 million shares at $22, below the range of $24 to $26. At the IPO price, Sanchez Energy commands a market value of $726 million. Sanchez Energy is controlled by the Sanchez Group, which has operated oil and gas businesses since 1972.
The company booked $13 million in revenue for the 12 months ended September 30, 2011. Sanchez plans to use $89 million of the IPO proceeds to complete the acquisition of 54,900 net undeveloped acres in South Texas from Ross Exploration. Including this acquisition, the company owns 175,497 net acres with 3.2 million barrels of oil equivalent in net proved reserves. Sanchez Energy plans to list on the NYSE under the symbol SN. Johnson Rice & Co. and Macquarie Capital acted as lead managers on the deal.
Sanchez Energy is the first of 5 energy IPOs (including 3 E&P companies) this week.
Bonanza Creek Energy (BCEI), an oil and gas exploration and development company operating in southern Arkansas and Colorado, plans to raise $300 million by offering 14.3 million shares at a price range of $20 to $22. The Denver, CO-based company plans to list on the NYSE under the symbol BCEI. Morgan Stanley (MS) and Credit Suisse (CS) are the lead underwriters on the deal.
Laredo Petroleum (LPI), an energy firm focused on the exploration and production of oil and natural gas in the Permian and Mid-Continent regions of the US, plans to raise $333 million by offering 17.5 million shares at a price range of $18 to $20. The Tulsa, OK-based company is backed by private equity firm Warburg Pincus, and plans to list on the NYSE under the symbol LPI. J.P. Morgan, Goldman, Sachs & Co. (GS), and BofA Merrill Lynch (BAC) are the lead underwriters on the deal.