[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.”

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