Mar 18, 2021 - Economy

Vine Energy raises $301 million in first fracking IPO since 2017

Dan Primack

Vine Energy, a Blackstone Group-backed natural gas E&P operating in Louisiana's Haynesville Basin, raised $301 million in its IPO. The company priced 21.5 million shares at $14, versus plans to offer 18.7 million shares at $16–$18.

Why it matters: Vine is the first U.S. shale producer to go public since 2017.

Details: The company will list on the NYSE (VIE). It reports a $252 million net loss on $349 million in revenue for 2020, versus a $24 million profit on $587 million in revenue for 2019.

Bottom line: "The IPO miss underscores how much investor appetite for the cash-intensive shale industry has waned after years of poor returns and a pandemic-driven market crash in 2020," Bloomberg writes.

While oil and natural gas prices have rebounded since last year, Wall Street has little interest in seeing a shale boom once again."

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Vine Energy raises $301 million in first fracking IPO since 2017

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