Kimmeridge Texas Gas Announces Pricing of Inaugural $500 Million Senior Unsecured Notes Offering

Offering upsized and final order book >5x oversubscribed, anchored by blue-chip investors

Notes will be used to repay a portion of outstanding revolver borrowings and support the buildout of an integrated US natural gas champion

HOUSTON, Jan. 8, 2025 /PRNewswire/ -- Kimmeridge Texas Gas ("KTG" or the "Company"), a producer of natural gas backed by Kimmeridge, today announced it successfully priced its inaugural $500 million Senior Unsecured Notes Offering at 8.50%. The net proceeds will be used to repay a portion of the Company's outstanding revolver borrowings and to further ongoing initiatives as the Company seeks to deliver natural gas from wellhead to water on a net-zero basis.

Given the strength of KTG's financial and operational profile, the company was able to capitalize on a favorable shift in natural gas prices to become the first issuer in the 2025 high-yield market. Following meetings with more than 30 high-yield investors, the final order book was oversubscribed and broadly allocated to a blue-chip investor base.

Bryan Gunderson, Chief Financial Officer of KTG, said, "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."

Bank of America served as lead book-running manager for the offering.

About Kimmeridge Texas Gas

 Kimmeridge Texas Gas is a producer of natural gas committed to accelerating carbon neutrality by developing environmentally responsible, low-cost energy assets. With approximately 162,000 net acres in Texas overlaying the dry gas window of the Eagle Ford Shale within Webb, La Salle, McMullen, Karnes, and Live Oak counties, the Company produces approximately 400 million cubic feet equivalent of natural gas and oil per day, selling into the South Texas market with access to Mexican export channels, to LNG terminals for global sales, and into pipelines directly servicing Gulf Coast petrochemical facilities.

About Kimmeridge

Founded in 2012 by Ben Dell, Dr. Neil McMahon and Henry Makansi, Kimmeridge is an alternative asset manager focused on the energy sector. The firm is differentiated by its direct investment approach, deep technical knowledge, active portfolio management, proven sustainability track record and proprietary research and data gathering.

Media:

Daniel Yunger / Hallie Wolff / Emma Cloyd
[email protected]
917.574.8582 / 917.842.1127

SOURCE Kimmeridge