- The company may confidentially file for its IPO with the SEC in April.
- Ascent produces gas from around 337,000 net acres in the Utica shale formation, Ohio.
According to reliable sources, U.S.-based natural gas producer Ascent Resources LLC is expecting to reach a valuation of USD 6 billion as it prepares for its IPO (initial public offering). This marks the first stock market debut of a U.S. shale operator since a spike in gas prices following Russia’s invasion of Ukraine.
This stock market volatility has prevented various companies from publicly listing, which is found to have been settling, although energy prices continue to remain high. Experts believe that this makes a favorable ground for Ascent Resources’ IPO.
For those unaware, Ascent produces gas from around 337,000 net acres in the Utica shale formation, Ohio. Founded in 2013 by First Reserve and EMG, the company was found to have approximately USD 2.6 billion in debt last year.
Speculations have it that Ascent may confidentially file for its IPO with the SEC in April and would be publicly listed in New York by the second half of this year. First Reserve Corp. and Energy & Minerals Group are reportedly working with Barclay’s plc and Citigroup Inc. for its stock market debut.
Ascent was also found to be in talks with Gulfport Energy Corp. for a possible collaboration, but sources confirmed that the discussions have broken down as the two sides expected different valuations. With Ascent’s IPO, the buyout firms will continue to retain the option of finding a buyer for the U.S. natural gas producer in the forthcoming period.
On similar grounds, Blackstone Inc. secured a USD 615 million deal to sell Vine Energy, a natural gas producer, to Chesapeake Energy Corp. just months after the investment management firm had listed Vine in New York.
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