While investors remain hesitant, many of them “still need upstream and midstream companies to deliver on deleveraging and free cash flow,” said Ethan Bellamy, managing director at Baird. (Source: Shutterstock.com)
Fewer energy companies are filing for IPOs to raise capital as investors remain cautious while the sector faces less volatility in crude oil prices.
A handful of companies filed for IPOs in 2018, including Berry Petroleum Corp. (NASDAQ: BRY). The Bakersfield, Calif.-based onshore oil production company aimed to raise $300 million from the offering but fell short of its goal after a lukewarm response by the market.
In July, Berry closed its IPO with the company’s shares priced at $14, below its target range of $15 to $17 and raising about $146.96 million. The stock was trading at $15.64 on Sept. 6, dipping below its high of $16.50 a share.