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
Marketed: Seven Falls Oil and Gas Non-operated CO2 Unit in Mississippi
2024-07-16 - Seven Falls Oil and Gas LLC has retained EnergyNet for the sale of a East Eucutta CO2 unit in Wayne County, Mississippi.
Marketed: DLH Capital Four Well STACK Opportunity
2024-05-29 - DLH Capital has retained EnergyNet for the sale of a four well package STACK opportunity in Caddo and Dewey counties, Oklahoma.
Marketed: Anschutz Exploration Niobrara Shale Opportunity
2024-05-29 - Anschutz Exploration Corp. has retained EnergyNet for the sale of a Niobrara Shale opportunity in Campbell County, Wyoming.
Marketed: Excess Energy 207 Well Package in Austin Chalk, Eagle Ford Shale
2024-06-04 - Excess Energy has retained EnergyNet for the sale of a Austin Chalk and Eagle Ford Shale, 207 well package in La Salle and Webb counties, Texas.
Marketed: Berlin Resources’ Anadarko Basin Opportunity
2024-07-22 - Berlin Resources has retained EnergyNet for the sale of an Anadarko Basin opportunity in the Montgomery 18/19 BO #1H, located in Ellis County, Oklahoma.