Oil and natural gas developer Infinity Natural Resources is pursuing an initial public offering in the United States after nearly doubling its revenue in the first half of the year, a filing from the company showed on Friday.
Backed by investment firms Pearl Energy Investments and NGP Capital, Infinity will aim to list on the NYSE. Its filing comes days after shares of natural gas producer BKV started trading.
Infinity is poised to enter the public market at a solid financial position, bolstered by a recent surge in oil prices as fears of a wider conflict in the Middle East threaten to disrupt global supply.
Its total revenue was $120.7 million for the six months ended June 30, compared with $61.4 million in the same period last year. Net income, however, fell 76% chiefly due to unrealized losses on derivatives that the company buys as a hedge against wild price fluctuations.
The beginning of a long-anticipated cycle of interest rate cuts by the U.S. Federal Reserve has sparked more activity in the IPO market, despite looming uncertainty from the presidential election in November.
Citigroup, Raymond James and RBC Capital Markets are the underwriters for Infinity’s IPO.
The energy sector is expected to benefit from economic conditions over the next six months, according to a Grant Thornton survey of CFOs from the industry.
“The outlook for the energy industry in the near- and mid-term is very positive,” said Bryan Benoit, principal and global head of energy and natural resources at Grant Thornton Advisors.
“One reason for optimism is the fact that oil and gas prices remain above historical levels, while hydrocarbon demand continues to increase as renewable production is not accelerating fast enough to meet the rising demand for energy.”
(Reporting by Niket Nishant in Bengaluru; Editing by Devika Syamnath)