[Editor’s note: This story was updated at 8:09 p.m. CT June 9.]
Brigham Minerals Inc. commenced a public offering of common stock on June 9, marking the company’s second equity offering within roughly the last six months.
In a company release, Brigham said it is offering 6 million shares of its class A common stock at $13.75 per share. The offering, later upsized to 6.6 million shares with a 990,000-share greenshoe option, is underwritten by certain of its stockholders that includes affiliates of Warburg Pincus LLC, Yorktown Partners LLC and Pine Brook Road Advisors LP.
Brigham Minerals will not sell any shares of its common stock in the offering and will not receive any proceeds therefrom. Credit Suisse Securities (USA) LLC is sole underwriter of the offering, expected to close June 12.
In December 2019, Brigham Minerals completed an equity offering, issuing 6 million shares for net proceeds of about $102.7 million. According to a filing, proceeds were used to fully repay the $80 million outstanding under its revolving credit facility. Any additional proceeds were earmarked for funding future acquisitions of mineral and royalty interests.
During the first quarter, Brigham Minerals acquired 1,625 net royalty acres, mostly located in the Permian Basin, closing 36 transactions for $25.4 million. However, due to the oil market collapse, the company pressed pause on all A&D activity and had not entered into any agreements in the second quarter as of May 13.
Still, the Brigham Minerals management team indicated that the company would continue to analyze transactions and saw a chance of improvement in the A&D market later in the year, according to Kyle May, senior equity research analyst at Capital One Securities Inc.
“With a lack of capital flowing to the industry, [Brigham Minerals] believes there is a realistic opportunity to see large chunkier deals with private equity funds in ‘20,” May wrote in a May 14 research note. “Larger deals would likely be funded with a substantial portion of equity, and management is confident [Brigham Mineral] equity and the portfolio of assets provide an attractive option for sizeable mineral owners in need of a more liquid asset.”
Recommended Reading
Enbridge Deals with Clean-Up of Wisconsin Pipeline Oil Spill
2024-12-20 - Enbridge estimates 1,650 bbl have leaked from its Line 6 before repair, an incident that has given fodder to opponents of another Enbridge project.
Kissler, Wyett: Trump Tariffs and Potential Energy Market Aftershocks
2024-12-20 - U.S. production and prices may increase; global cooperation may decrease; but Trump’s previous tariffs had less of an impact on import prices than the COVID pandemic.
Analysts: DOE’s LNG Study Will Result in Few Policy Changes
2024-12-18 - However, the Department of Energy’s most recent report will likely be used in lawsuits against ongoing and future LNG export facilities.
Commentary: Maximizing the Opportunity for Energy Dominance
2024-12-18 - Energy produced in the U.S. already has a strong grip on global markets. But with the country on the cusp of a new regulatory environment, will the U.S. capitalize on the opportunity to maximize energy dominance?
Permitting Reform Stalls in Congress Despite Industry Support
2024-12-17 - Both parties blamed each other for lack of action on proposed legislation favored by the energy industry.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.