Athlon Energy plans $345M IPO
June 11, 2013 | posted by The Institute
By: Lance Murray
Fort Worth-based Athlon Energy Inc. has filed for an IPO valued at $345 million.
The oil and gas company plans to trade on the New York Stock Exchange under the ticker symbol ATHL . Athlon, which was formed in 2010 in partnership with Apollo Global Management.
Athlon operates in the Permian Basin and has 124,925 acres in that area as of May 31, according to the company's filing with the Securities and Exchange Commission. It reported $53 million in net income in 2012 on $157 million in revenue.
Citigroup is serving as the lead underwriter.
Robert Reeves is president and chief executive officer of Athlon.
The IPO will reduce debt and provide additional liquidity for use in future drilling programs and acquisitions, according to Athlon’s website.
Bud Weinstein, associate director of the Maguire Energy Institute at Southern Methodist University, said the current oil and gas boom is unlike anything he's seen in 40 years.
“Strike while the iron is hot,” Weinstein said. “Everybody wants to get in the oil and gas business these days. I haven’t seen activity like this since the 1970s but then again we haven’t had a boom like this since the 1970s.
“With the boom that’s occurring in the Permian basin, most of the production coming from the Permian, this is probably a good time to go the IPO route.”