Tapstone Set to Test IPO Waters
Tapstone Energy Inc. is a firm that explores oil and gas reserves and is based in Oklahoma City. In a filing with the Securities Exchange Commission on April 13th this year, the company confirmed that it was seeking to make its way to trading floors soon. However, the plan appears to have been in the running for longer since Tapstone had already filed confidentially with the SEC well into the last quarter of 2016. In its regulatory filing, the company said it targets to raise a revenue of $100 million. However, financial analysts have deduced that the figure could just be a placeholder used so for the calculation of the registration fee. Forecasts have estimated that the issuance could raise as much as $400 million.
The exploration company says in its filings that it boasts the largest adjoining position across the Northwest Stack Play. As of 23rd March this year, the firm had drilled a total of 33 wells in its positions. These were used for the extraction of both oil and gas which were transported to refineries and supplied to various manufacturing industries for their operations. The corporation’s property in the play totals to about 200,000 acres. The land borders Ellis, Dewey, Major and Woodward counties in Oklahoma.
Planned underwriters for Tapstone’s release include Bank of America Merrill Lynch and Citigroup. The company plans to appear on the New York Securities Exchange under the ticker ‘TE.’ So far, no information concerning the share price range and the number of shares has been released to the public.
The company was incorporated in 2013 by former Chief Executive Officer Tom Ward. However, he left the position in 2016. Steven C. Dixon is the firm’s current President, Chairman, and CEO. The move was put into effect from January 2017. This change has been described as positive since Dixon has 36 years of experience in the oil and gas industry as Executive Vice President of Operations and Geosciences and Chief Operating Officer of Chesapeake Energy. In this position, he was able to oversee extensive drilling programs and bring them to fruition that consequently led to Chesapeake’s growth. Initial funding for the venture was provided by GSO Capital Partners LP who are a subsidiary of The Blackstone Group, LP. Despite Ward’s removal, however, he remains with a “large ownership stake” at the firm. As such, a positive IPO could mean high returns to him.
So far, the firm’s main stronghold is in the fact that it has vast, continuous acreage in the stack that other competitors in the oil and gas sector lack. By taking advantage of the badly-performing oil industry in 2014, the company acquired the land by first leasing it. After positive exploration results, the Corporation bought the land in the Northwest Play and has since then been maximizing its oil and gas reserves. Just like other businesses seeking to maximize operations by an upsurge in revenue, the company aims to venture into public markets during this positive IPO window.