Fort Worth Inc.
Fort Worth-based TXO Energy Partners watched its stock climb 13% in recent trading after an initial public offering on Friday.
Shares of TXO opened at $22, reaching a high of $22.99 in mid-morning trading, according to MarketWatch.
TXO announced on Thursday that it was offering five million shares at $20 per share. The company granted underwriters an option to purchase up to an additional 750,000 common units. Company officials said in a press release that they planned to use IPO proceeds to repay a portion of its revolving credit facility.
TXO, the company formed by Bob Simpson, was formerly MorningStar Partners LP. It develops conventional oil and natural gas assets in the Permian Basin of West Texas and the San Juan basin of New Mexico.
The offering is expected to close on Jan. 31, subject to customary closing conditions.
TXO said it expects to receive net proceeds of approximately $88 million, after deducting underwriting discounts and commissions and excluding any exercise of the underwriters’ option to purchase additional common units, according to a press release.
Upon the closing of the offering, the public will own an approximate 17% limited partner interest in TXO, or an approximate 83% limited partner interest if the underwriters exercise, in full, their option to purchase additional common units.