Capital markets have started to return to US shale
IPO highlights investors’ US shale hesitancy
Vine Energy’s financing efforts reveal lingering public market doubts despite healthy prospects for gas
Last week’s initial public offering by US gas producer Vine Energy may have been the first of its kind in the shale patch for over four years. But it also served as an important litmus test for onshore investor confidence. The Haynesville pure-play producer, backed by private equity firm Blackstone, successfully raised $301mn through the sale of 21.5mn shares priced at $14 each. But the share price fell below the expected $16-19 range, forcing the company to offload another 2.8mn shares to break through the $300mn ceiling. “The somewhat muted interest shows investors are still cautious of the risks involved and focused on free cash flow (FCF), meaning other privates looking to an IPO, especi
Also in this section
21 February 2025
While large-scale planned LNG schemes in sub-Saharan Africa have faced fresh problems, FLNG projects are stepping into that space
20 February 2025
Greater social mobility means increased global demand for refined fuels and petrochemical products, with Asia leading the way in the expansion of refining capacity
19 February 2025
The EU would do well to ease its gas storage requirements to avoid heavy purchase costs this summer, with the targets having created market distortion while giving sellers a significant advantage over buyers
18 February 2025
Deliveries to China decline by around 1m b/d from move to curb crude exports to Shandong port, putting Iran under further economic pressure
