Rice Energy planning IPO: Reuters
Posted on Thursday, 17 October 2013 14:15
Pennsylvania-based natural gas exploration firm Rice Energy is looking to carry out an initial public offering (IPO), Reuters reported.
Sources told the news provider the offering could value the company at between USD 1.50 billion and USD 2.50 billion.
The people with knowledge of the matter said Rice Energy has submitted a confidential registration statement to US regulators and has hired Barclays to manage the offering.
The IPO is due to take place at the start of 2014, the individuals, who declined to be identified, told Reuters.
Neither the company, nor Barclays were able to comment on the reports.
Rice Energy was founded in Cannonsburg in 2005 by Daniel Rice III, who was formerly a manager of Blackrock portfolios.
His son Toby Rice is the current chief executive of the business.
Daniel Rice stepped down from Blackrock last year after questions were raised regarding his personal dealings involving investments in Rice Energy and its joint venture with Alpha Natural Resources.
Following the tie-up between the two companies, Blackrock increased its stake in Alpha from 2.0 per cent to more than 9.0 per cent, as reported by the Wall Street Journal earlier this year.
Rice Energy is a major provider of natural gas exploration and production services in the Pennsylvania region.
According to its website, it is the second largest player in Washington County and one of the top producers in Greene County.
The firm’s current projects include Pennsylvania's Marcellus shale, a formation which covers 15.00 million acres across four states.
It has depths below the surface of between 4,000 and 9,000 feet.
The company’s first Marcellus Shale well was drilled in Washington County in 2004.
Rice Energy is also a portfolio company of private equity firm Natural Gas Partners.
For the financial year 2012, it had estimated operating revenue of USD 2.20 million.
© Zephus Ltd
