Oklahoma City-based Mach Natural Resources LP (MNR proposed), an oil and natural gas limited partnership, is the featured attraction this week. Mach is the only big traditional deal on the IPO Calendar for the week of Oct. 23, 2023. Mach is offering 10 million common units at $19.00 to $21.00 to raise $200 million – if the IPO is priced at the $20.00 mid-point. The Mach IPO is expected to price Tuesday night (Oct. 24, 2023) to trade Wednesday (Oct. 25) on the New York Stock Exchange.
Stifel and Raymond James are the joint book-runners of Mach’s IPO.
This deal is the second oil and gas limited partnership IPO this year. Mach follows TXO Energy Partners, L.P. (TXO), which went public in January. Raymond James and Stifel were the joint book-runners of TXO Energy’s $100 million IPO.
Mach, like TXO, plans to offer a quarterly cash dividend.
The Mach deal’s timing could work in its favor with the oil and gas sector in play, the seasoned IPO pros say. Chevron Corp. said early today (Monday, Oct. 23, 2023) that it will buy Hess Corp. for $53 billion, Bloomberg reported – noting that this is “the second major U.S. oil deal in just a few weeks.”
Brent crude oil futures are trading at around $92 a barrel – up about 8 percent since the Oct. 7 attack on Israel by Hamas – according to Bloomberg.
Mach is focused on acquiring, developing and producing oil, natural gas and NGL reserves in the Anadarko Basin of Western Oklahoma, Southern Kansas and the Panhandle of Texas. The company, formed in 2017, has an acreage position of about 936,000 net acres (99 percent held by production) and over 2,000 horizontal drilling locations, with more than 750 of those in the Oswego formation, a prolific reservoir in north central Oklahoma, the prospectus says.
The company is backed by Bayou City Energy, a Houston private equity firm that specializes in oil and gas exploration and production. Tom L. Ward is the CEO. He served as the chairman and CEO of SandRidge Energy (SD) from 2006 to 2013 and Tapstone Energy from 2013 to 2017, according to the prospectus. Ward was the president of Chesapeake Energy Corp. (CHK), a fracking pioneer, from the time he co-founded the company in 1989 until February 2006.
Mach is highly profitable, according to the prospectus. Mach reported net income of $463.71 million on revenue of $893.08 million for the 12 months that ended June 30, 2023, based on historical financial figures in the prospectus; pro forma figures are higher.
Clean Energy SPAC IPO Ahead
Prospect Energy Holdings Corp. (AMGSU proposed), a $75 million clean energy SPAC IPO, is on the IPO Calendar with a pricing date listed as “the week of Oct. 23, 2023.” EF Hutton is the sole book-runner.
Two tiny IPOs – Globavend Holdings (GVH proposed), the parent of a Hong Kong-based e-commerce logistics provider, and Pineapple Financial (PAPL proposed), a Canadian mortgage technology and brokerage company – round out this week’s IPO Calendar with “week of Oct. 23, 2023” pricing dates.
Stay tuned.
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)
Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board.
To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message.
Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.
Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.