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Capital Markets Options Shift for Oil, Gas Producers

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Following the announcement that Var Energi was reviewing its strategic alternatives, including a potential IPO, the editor of Energy Intelligence approached London Energy Transactions and Projects partner Alex Msimang for insight on the broader market for oil and gas IPOs.

When asked about companies looking to sell equity into the current market and their need to make sure that they have the right assets and the strategy to win over Wall Street. Alex commented: “On the company side there is pent-up demand for capital as other sources — such as traditional bank debt — have cut back their allocations for oil and gas. At the same time, on the IPO [initial public offering] investor side high commodity prices — and the prospect of high returns — are starting to look eye-catching again. So, there is inevitably some interest.”

Read the full article here.

This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.