Durango, Colorado-based Peak Resources L.P. (PRB Proposed), an oil and gas limited partnership, disclosed the terms for its unit IPO today, Oct. 15, 2024, to raise $65.8 million, according to an S-1/A filing. Peak Resources plans to offer 4.7 million Class A common units at a price range of $13.00 to $15.00 per unit to raise $65.8 million, – with a market cap of about $203.67 million – if the IPO is priced at the $14.00 mid-point of its range. This is an NYSE – American Exchange listing.
Janney Montgomery Scott is the lead book-running manager. Roth Capital Partners and Texas Capital Securities are the joint book-running managers. Seaport Global is the co-manager.
Peak Resources L.P.’s initial public offering is expected to price next week. The pricing date has not yet been determined.
Peak Resources plans to use about $40.9 million – or about 71.5 percent of the IPO’s net proceeds – to repay part of the amount outstanding under its existing credit facility, the prospectus said. The limited partnership said it also intends to use about $15.0 million from a new credit facility (in negotiations now) to repay the existing credit facility in full.
A quarterly dividend of 30 cents per Class A common unit is planned – resulting in an annual payout of $1.20 or 8.6 percent annually per Class A common unit – according to the prospectus. That projected payout is based on the $14.00 mid-point of the price range for Peak Resources’ unit IPO.
Peak Resources L.P. is not profitable. The Colorado oil and gas limited partnership reported a net loss of $0.13 million (a net loss of $130,000) on revenue of $48.7 million for the 12 months that ended June 30, 2024, according to financial statements in the prospectus.
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