Kimmeridge Texas Gas holds approximately 162,000 net acres in the Eagle Ford Shale. (Source: Kimmeridge Texas Gas)
Eagle Ford E&P Kimmeridge Texas Gas (KTG) successfully priced its inaugural $500 million senior unsecured notes offering at 8.50%, the company said Jan. 8.
The net proceeds will be used to repay a portion of the company's outstanding revolver and to further “ongoing initiatives as the company seeks to deliver natural gas from wellhead to water on a net-zero basis,” KTG said.
KTG, which holds approximately 162,000 net acres in the Eagle Ford Shale and averages 400 MMcfe/d, is backed by private equity firm Kimmeridge Energy Management.
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KTG said its financial and operational profile enabled the company to capitalize on a favorable shift in natural gas prices “to become the first issuer in the 2025 high-yield market.”
“Following meetings with more than 30 high-yield investors, the final order book was oversubscribed and broadly allocated to a blue-chip investor base,” KTG said.
Bryan Gunderson, KTG’s CFO said, the financing was secured on favorable terms and will help accelerate “our growth trajectory, including our highly compelling offtake agreement with Commonwealth LNG."
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Bank of America served as lead book-running manager for the offering.
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