Excelerate Energy Inc. jumped 17.5% in its market debut on April 13, riding on investor demand for companies with exposure to LNG amid the Russia-Ukraine conflict and ending a lull in U.S. capital markets since the invasion.
The company, a provider of floating LNG (FLNG) terminals owned by energy tycoon George Kaiser, hit a peak valuation of nearly $3 billion in the session.
Shares were up 13% at $27.13 in afternoon trading after hitting a high of $28.25. The IPO was priced at $24 apiece, the top end of the range.
Excelerate’s is also the first LNG-related IPO in the U.S. since 2019, indicating a reversal in fortunes for fossil fuel companies as crude oil and natural gas prices bounced back from pandemic lows.
Demand is also set to skyrocket as European nations double down on efforts to lower their imports of Russian oil, coal and liquefied natural gas following the invasion of Ukraine.
Since the war, Excelerate has had more inquiries from countries traditionally dependent on Russian gas imports, the company said in a regulatory filing last week.
“The war in Ukraine has focused everyone’s attention on the absolute need for energy security,” said CEO Steven Kobos.
“That focus is clearly felt in Europe, but the lessons of that are extending to the rest of the world,” he added.
Rocky Market
The listing tests a rocky U.S. equity capital market, where jitters around the Ukraine crisis have forced a number of potential issuers to cancel or postpone their offerings.
Only 22 companies have gone public in the U.S. so far this year excluding SPAC IPOs, compared with 106 during the same time period last year, according to data provider Refinitiv.
Barclays, J.P. Morgan and Morgan Stanley are the lead underwriters of Excelerate’s offering.
Recommended Reading
Dividends Declared Week of Feb. 17
2025-02-21 - 2024 year-end earnings season is underway. Here is a compilation of dividends declared from select upstream, midstream, downstream and service and supply companies.
Viper Makes Leadership Changes Alongside Diamondback CEO Shakeup
2025-02-21 - Viper Energy is making leadership changes alongside a similar shake-up underway at its parent company Diamondback Energy.
Diamondback’s Stice to Step Down as CEO, Van’t Hof to Succeed
2025-02-20 - Diamondback CEO Travis Stice, who led the company through an IPO in 2012 and a $26 billion acquisition last year, will step down as CEO later this year.
SM Energy Restructures Leadership Team
2025-02-20 - SM Energy Co. has made several officer appointments and announced the retirement of Jennifer Martin Samuels, the company’s vice president of investor relations and ESG stewardship.
Q&A: Petrie Partners Co-Founder Offers the Private Equity Perspective
2025-02-19 - Applying veteran wisdom to the oil and gas finance landscape, trends for 2025 begin to emerge.
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.