Kimmeridge Texas Gas Successfully Launches $500 Million Notes Offering

Kimmeridge Texas Gas Debuts with $500 Million Senior Notes Offering

Kimmeridge Texas Gas (KTG), a notable player in the natural gas sector, has made headlines recently by successfully pricing its inaugural $500 million Senior Unsecured Notes Offering at an attractive rate of 8.50%. The high demand for these notes reflects confidence from investors in KTG's strategic vision and growing operational capabilities.

Strong Investor Demand Fuels Oversubscription

The offering has gained significant traction, with the order book exceeding five times the amount offered, a testament to the strong foundations of Kimmeridge Texas Gas. With interest from over 30 high-yield investors, this enthusiastic reception underscores the company's robust financial health and operational strength, setting a positive tone as the first issuer in the 2025 high-yield market.

Leveraging Natural Gas Market Dynamics

The timing of this offering is particularly strategic, as Kimmeridge Texas Gas has taken advantage of recent favorable trends in the natural gas market. This move not only positions the company favorably for potential market shifts but also aids its objective to enhance the production of natural gas with a commitment to environmental sustainability.

Investment to Propel Company Initiatives

KTG plans to deploy the proceeds from this offering primarily to reduce a portion of its outstanding revolver borrowings and to propel various ongoing initiatives. A focal point of these initiatives includes their commitment to delivering natural gas from the wellhead to water—aiming to achieve this goal on a net-zero carbon emissions basis.

Leadership Insights on Growth and Strategy

Bryan Gunderson, the Chief Financial Officer of Kimmeridge Texas Gas, expressed enthusiasm over the successful bond offering. He stated, "This inaugural bond offering reflects the strength of our differentiated platform, and the confidence investors have in our future. The financing, secured on favorable terms, will help accelerate our growth trajectory, including our highly compelling offtake agreement with Commonwealth LNG." This sentiment clearly illustrates the confidence KTG has in its growth potential and the supporting factors that contribute to this optimistic outlook.

Company Overview: Kimmeridge Texas Gas

Kimmeridge Texas Gas operates primarily by producing natural gas while focusing on accelerating carbon neutrality through the development of low-cost, environmentally responsible energy assets. The company boasts an impressive portfolio, with approximately 162,000 net acres in Texas. These assets span the dry gas window of the Eagle Ford Shale located within key counties, enabling the production of around 400 million cubic feet equivalent of natural gas and oil daily.

Strategic Market Connections

Kimmeridge Texas Gas has established critical market connections that enhance its operational framework. The company benefits from sales into the South Texas market and has developed channels that facilitate access to Mexican export routes and terminals for liquefied natural gas (LNG) aimed at global markets, as well as pipelines that service Gulf Coast petrochemical facilities.

A Look at Kimmeridge: The Parent Company

Founded in 2012 by industry visionaries Ben Dell, Dr. Neil McMahon, and Henry Makansi, Kimmeridge has positioned itself as a distinguished alternative asset manager within the energy sector. The firm is recognized for its direct investment strategy, deep technical expertise, and active management of its portfolio. Kimmeridge’s proven track record in sustainability further enhances its reputation and attractiveness to investors, ensuring that it remains a prominent player in the energy landscape.

Contact Information for Media Inquiries

For further inquiries, media representatives can reach out to Daniel Yunger, Hallie Wolff, or Emma Cloyd. The contact numbers are 917.574.8582 and 917.842.1127.

Frequently Asked Questions

What is Kimmeridge Texas Gas's recent financial achievement?

Kimmeridge Texas Gas has successfully launched its inaugural $500 million Senior Unsecured Notes Offering at 8.50%.

How did investors respond to the notes offering?

The notes offering was oversubscribed with a final order book exceeding five times the amount offered due to strong investor interest.

What will the proceeds from the notes be used for?

The proceeds will be utilized to reduce outstanding revolver borrowings and support various ongoing initiatives of the company.

What is the core focus of Kimmeridge Texas Gas?

Kimmeridge Texas Gas is committed to producing natural gas while maintaining a focus on environmental sustainability and carbon neutrality.

How does Kimmeridge Texas Gas connect to broader markets?

The company has established key market connections facilitating access to Mexican export routes and global LNG markets, enhancing its operational advantage.

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