After selling to a group of private equity firms lasts year, a Houston oil and gas producer with assets in U.S. shale plays is reaching out to public markets.
EP Energy LLC filed to go public on Wednesday, but the company has not yet disclosed the number of shares it plans to offer or when it expects to launch its initial public offering. In a regulatory filing, the company said it could generate $100 million from the IPO, but first estimates for a public raise often change after the initial paperwork is filed.
The company, which has more than 1,000 employees in Houston and was once a subsidiary of natural gas pipeline company El Paso Corp., fetched $7.15 billion when it was sold to New York private equity giants Apollo Global Management, Riverstone Holdings and others in May last year.
“Our management team has a proven track record of identifying, acquiring and developing unconventional oil and natural gas assets,” EP Energy said in regulatory filings. “The majority of our senior management team has worked together for over a decade and the team has significant experience at prominent oil and gas companies that have included El Paso Corporation, ConocoPhillips and Burlington Resources.”
EP Energy officials were not immediately available for comment.
Since the first quarter of 2011, EP Energy has seen 280 percent growth in oil production volume, pumping from 5,215 onshore wells in the Eagle Ford Shale in South Texas, the Wolfcamp Shale in West Texas, the Uinta Basin in Utah and the Haynesville Shale in Louisiana. In the second quarter of 2013, the company produced 93,674 barrels of oil per day.
Most of the company’s capital budget for the past two years has been pumped into the Eagle Ford, Wolfcamp and Uinta plays — about $600 million, $236 million and $94 million, respectively, during the first half of this year. The company also sold about $1.3 billion worth of non-core assets in July and August, according to regulatory filings.
It also expects to trade on the New York Stock Exchange under the symbol EPE, and will remain a “controlled company” after the IPO, meaning the private equity group will still own a certain amount of the EP Energy’s shares.
EP Energy said in filings that it plans to repay debt with the IPO proceeds.
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