By Will Anderson Managing Editor, Austin Business Journal | Bud Brigham, who has sold two oil companies this decade for a combined $6.8 billion, is involved in a new venture.
He is the executive chairman of Brigham Minerals Inc., which is gearing up for an initial public offering.
The Austin-based oil-and-gas royalties company filed confidentially for an IPO on July 17 and the filing was made public March 18. There is no date yet for the offering.
Brigham Minerals owns royalty interests under 68,800 acres in Texas and elsewhere in the United States. The company was founded in 2012 and had $67 million in revenue in 2018, according to the filing.
Through the end of 2018, management said it had completed 1,292 transactions with third-party mineral and royalty interest owners.
In the IPO paperwork, Brigham Minerals indicates it hopes to raise $100 million, although that number is likely a placeholder to help the company establish valuation.
Brigham Resources has not disclosed how many shares it plans to sell or at what price; expect those details at a later date. The company aims to list on the New York Stock Exchange with the ticker “MNRL.” Credit Suisse and Goldman Sachs are the joint underwriters.
Brigham Resources is a royalty company, meaning it invests in wells and in return receives a percentage of the revenue that companies generate from selling oil from those wells. But because it doesn’t actually operate any wells, Brigham Resources isn’t on the hook for many of the expenses incurred in the oil field, such as the cost of drilling and completing wells or any environmental cleanup.
In addition to Bud Brigham, the other named executives at Brigham Minerals are CEO Robert Roosa and Chief Financial Officer Blake Williams.
Bud Brigham sold Brigham Exploration to Statoil ASA in 2011 for $4.4 billion and then sold Brigham Resources LLC to Diamondback Energy Inc. in 2016 for $2.43 billion. He’s also the founder of Atlas Sand Company LLC, which supplies sand for hydraulic fracturing in West Texas.
Brigham Resources said its holdings are clustered in four areas — the Permian Basin in West Texas and New Mexico, the Anadarko Basin in Oklahoma, the DJ Basin in Wyoming and Colorado and the Williston Basin mostly in North Dakota. The 68,800 acres it owned last year supported 64 oil and gas rigs in the fourth quarter, with average daily production of 4,579 barrels of oil equivalent per day.
Some of the companies drilling on its land include Anadarko Petroleum Corp. (NYSE: APC), Noble Energy Inc. (NYSE: NBL), Encana Corp. (NYSE: ECA) and Continental Resources Inc. (NYSE: CLR), according to the filing.
Update September 10th, 2020
Brigham Minerals, Inc today announced the pricing of an underwritten public offering of 4,366,209 shares of its Class A common stock (“common stock”) by certain of its stockholders which are affiliates of Warburg Pincus LLC, at a price to the public of $8.20 per share. The selling stockholders have granted the underwriter a 30-day option to purchase up to an additional 654,931 shares of common stock. The offering is expected to close on September 15, 2020, subject to customary closing conditions. Brigham Minerals will not sell any shares of its common stock in the offering and will not receive any proceeds therefrom. Credit Suisse Securities (USA) LLC acted as sole underwriter for the offering.
In addition, the Company’s previously announced repurchase of 436,630 shares of its common stock from the selling shareholders pursuant to a separate, privately negotiated agreement (the “Share Repurchase”) has been completed at a price equal to the price per share to the underwriter of the offering. The total aggregate purchase price for the Share Repurchase is approximately $3.5 million.
The offering is being made pursuant to an effective shelf registration statement and prospectuses filed by the Company with the Securities and Exchange Commission. The offering of these securities will be made only by means of a prospectus and prospectus supplement. Copies of the preliminary prospectus supplement and accompanying base prospectus relating to the offering, as well as copies of the final prospectus supplement once available, may be obtained from:
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