Oil and gas producer Morningstar, a.k.a. TXO Energy, files for $100M IPO

Oil and gas company MorningStar Partners LP, soon to be known as TXO Energy Partners LP (TXO), has filed for a proposed $100M initial public offering.

MorningStar didn’t disclose in its filing the number or price of the shares to be offered, but indicated in an attached filing fee schedule that it was looking to raise up to $100M, a number that is likely a placeholder and subject to change.

MorningStar said that it plans to change its name to TXO Energy Partners ahead of the offering and may also conduct a reverse stock split.

The company hopes to list its shares on NYSE under the symbol TXO. Bookrunners include Raymeond James, Stifel, Janney Montgomery Scott and Capital One Securities.

Based in Fort Worth, Texas, TXO will be focused on acquiring, developing and exploiting oil and gas reserves, primarily in the Permian Basin of Texas and New Mexico and the San Juan Basin of New Mexico and Colorado.

The company is profitable. For the nine-month period ended Sept. 30, it reported net income of $15M on revenue of $204M.

MorningStar is the latest oil and gas company to file for an IPO. Natural gas interests manager Bounty Minerals (BNTY) filed for a $100 IPO last week while Permex Petroleum (OTCQB:OILCD) filed earlier this month to uplist its shares to NYSE and raise $11M.