Fort Worth Inc.
MorningStar Partners LP, the Bob Simpson-led oil and gas company based in Fort Worth, is filing for a proposed $100 million initial public offering.
The development was first reported by the Fort Worth Report.
“We believe our management team has the experience, expertise and commitment to create significant value for our unitholders in the form of cash distributions combined with growth in revenues and production,” the company said in the IPO filing.
The company said it plans to change its name to TXO Energy Partners. Bob Simpson started the company after the 2009 sale of XTO Energy to ExxonMobil for $41 billion. Exxon moved the subsidiary’s headquarters to Houston in 2014.
Simpson is also part-owner of the Texas Rangers, along with Ray Davis.
The Fort Worth Report said the company may also conduct a reverse stock split, which consolidates the number of existing shares of stock held by shareholders into fewer shares. The company said it hopes to list its shares on the NYSE under the symbol TXO.
According to the filing, as of the end of 2021, the company’s assets consisted of about 846,000 leasehold and mineral acres located primarily in the Permian and San Juan basins. The total estimated reserves were about 130 million barrels of oil equivalent per day, of which about 37% was oil. According to the filing, the company had net income of $15 million on revenue of $204 million in the nine-month period ending in September. In 2021, the company reported $64.7 million in net income and revenue of $278.7 million.
The company says it will be focused on acquiring, developing and producing oil and gas reserves, primarily in the Permian Basin of Texas and New Mexico and the San Juan Basin of New Mexico and Colorado.