(Repeats Sept. 14 story to remove extraneous word.)
By Lauren Hirsch
Sept 14 Noble Midstream Partners LP, a
wholly owned unit of Noble Energy Inc, priced its
initial public offering (IPO) above earlier expectations, the
company said on Wednesday, raising $281 million and breaking a
year-long drought for IPOs in the oil and gas sector.
Noble priced 12.5 million shares at $22.50, above its
previously indicated range of $19 and $21, the company said in a
The IPO of Houston, Texas-based Noble came after it shelved
its plans to go public in November 2015 due to a slump in oil
prices. It gives hope to the growing backlog of oil and gas
companies aspiring to go public, following a modest rise in the
price of oil.
A slow IPO market, in conjunction with an oil rout, had made
it nearly impossible for oil and gas companies to break through
to the public market. By this time last year, on the other hand,
there were 59 IPOs in the energy and power sector, raising a
total of $10 billion, according to Thomson Reuters Data.
After reaching 12-year lows hit early this year, oil prices
have begun to bounce back. The industry's slow return, which has
coincided with a stronger IPO market, has jarred open the IPO
window for the many oil and gas drilling and pipeline companies
looking for liquidity.
Roughly a dozen natural resource drillers and producers are
considering an IPO, Reuters has previously reported. Yesterday,
Vantage Energy Inc filed publicly for an IPO after having
confidentially filed, as first reported by Reuters.
Still, industry insiders expect that a handful of these
firms will be bought by larger energy companies, who have
collectively fortified themselves with $30 billion through
secondary stock offerings since early 2015.
Noble Midstream Partners LP will own and operate pipelines
and processing assets largely in Colarado's Weld County. Noble
will use the proceeds from the IPO to put cash back into its
Noble's shares are scheduled to start trading on NYSE on
Thursday under the symbol "NBLX."
Barclays, Baird, J.P. Morgan, BofA Merrill Lynch, Citigroup,
and Deutsche Bank Securities are among underwriters to the
Noble Midstream offering.
(Reporting by Lauren Hirsch, editing by G Crosse and Bernard