[Editor's note: A version of this story appears in the August 2021 issue of Oil and Gas Investor magazine.]
It’s been a longer-than-anticipated wait, but Dallas-based natural gas producer Vine Energy Inc. finally found its home in the league of public players. This spring, the Haynesville Shale-focused operator relaunched its IPO after having first tested the waters in 2017, becoming only the second pure-play producer in the basin. Notably, Vine is the first E&P to IPO since Jagged Peak Energy in 2017.
Despite the oil and gas sector being in the penalty box the previous four years due to a run of poor sector returns over the past decade and energy transition headwinds, Vine was able to raise some $350 million with a little help from sponsor The Blackstone Group and management, which backstopped the offering and continues to control 73% of shares. It enters the public arena with a $1.2 billion market cap.
Immediately following the IPO, Vine completely refinanced the company via a new reserve-based loan with a borrowing base of $350 million and a $950 million bond offering. Oil and Gas Investor visited with Marsh in June.