Gas Producer Aethon Considers IPO at $10 Billion-Plus Valuation




  • In Business
  • 2022-06-17 20:21:28Z
  • By Bloomberg
 

(Bloomberg) -- Aethon Energy Management, a closely held gas producer in Texas and Louisiana, is considering an initial public offering that could value the business at more than $10 billion, according to people familiar with the matter.

Most Read from Bloomberg

  • China Says It May Have Detected Signals From Alien Civilizations

  • Musk, Tesla, SpaceX Are Sued for Alleged Dogecoin Pyramid Scheme

  • 'Drip Pricing' Is Turning Checkout Into a Nasty Surprise

  • US Equities End Turbulent Week With a Modest Gain: Markets Wrap

  • Biden Signals US Can Avert Recession But Americans Are 'Really Down'

Aethon is also considering other options including selling its assets in northern Louisiana, said the people, who declined to be named because the talks are private. Aethon is under no pressure to do a deal and no decisions have yet been made, the people said.

A representative for Aethon declined to comment.

Henry Hub gas prices are up almost 90% this year, increasing valuations for US gas producers, which are central to Europe's ability to wean itself off Russian sources. Aethon is the most active driller in the Haynesville shale basin, which straddles East Texas and northern Louisiana, and is close to several liquefied natural gas export terminals along the Gulf Coast.

An IPO would provide public investors with a free-cash-flow producing gas business with growth opportunities that are less burdened by the pipeline constraints affecting rivals in other parts of the country, the people said.

Dallas-based Aethon was founded by oil and gas investor Albert Huddleston in 1990 and has managed $1.6 billion in assets for family and institutional investors since its inception, according to its website.

Reuters reported in January that the Louisiana sale could be valued at around $6 billion.

Most Read from Bloomberg Businessweek

  • Sheryl Sandberg's Wedding Expenses Are the Least of Facebook's Sheryl Sandberg Problems

  • Ethereum Mining Is Going Away, and Miners Are Not Happy

  • Hell Is a Cruise Ship at the Beginning of the Pandemic

  • The Last Bear Market Was Short-Lived. This One Feels Different

  • Janet Yellen Is Struggling at the Treasury Job She Never Wanted

©2022 Bloomberg L.P.

COMMENTS

More Related News

Hong Kong
Hong Kong's Dry Spell for IPOs Set to End With Big China Deals

(Bloomberg) -- After a dismal first six months, things are finally looking up for initial public offerings in Hong Kong as several large Chinese firms line...

Argentina Economy Minister Guzman Resigns as Divisions Grow
Argentina Economy Minister Guzman Resigns as Divisions Grow

(Bloomberg) -- Argentine Economy Minister Martin Guzman resigned Saturday, marking the biggest departure of President Alberto Fernandez's government after...

US Jobs Report Seen Showing Resilient Labor Demand: Eco Week
US Jobs Report Seen Showing Resilient Labor Demand: Eco Week

(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.Most Read from BloombergJPMorgan Sees...

Bond Holders Look to Recession for Salvation After Vicious Half
Bond Holders Look to Recession for Salvation After Vicious Half

(Bloomberg) -- Treasury holders reeling from the most brutal first half on record are starting to bet that a worsening economy will deliver some relief from ...

Germany Risks a Cascade of Utility Failures, Economy Chief Says
Germany Risks a Cascade of Utility Failures, Economy Chief Says

(Bloomberg) -- Germany should prepare for deeper cuts in Russian gas supplies because President Vladimir Putin is pursuing a conscious strategy of driving up...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business