According to the Zhitong Finance APP, after experiencing the worst year since 2003, the energy sector is making a comeback in the U.S. initial public offering (IPO) market, with sizable deals emerging like mushrooms after rain.
Data compiled by Bloomberg shows that only six energy companies went public on U.S. exchanges in 2024, raising $667 million, the lowest level for the industry in 21 years. This figure could be surpassed as early as January.
U.S. natural gas exporter Venture Global Inc. is seeking to raise $2.3 billion through its IPO, while oilfield services company Flowco Holdings Inc. plans to raise nearly $400 million.
The scale of U.S. energy stock IPOs in 2024 has fallen to a 21-year low.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250115/1736923107988954.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="image.png" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250115/1736923107988954.png"/>
Reasons for the trading rebound include rising commodity prices, strong recent performance of energy stock IPOs, and the pro-oil policies of U.S. President Donald Trump.
Josef Schuster, founder and CEO of index provider Ipox Schuster LLC, which focuses on newly listed stocks, stated that all these factors indicate a &#34;bright outlook&#34; for more energy deals. Schuster noted that Trump's support for U.S. liquefied natural gas exports and expectations for the energy sector will help boost market sentiment.
&#34;I believe the market is ready for a large number of excellent energy stock IPOs,&#34; Schuster said, adding that even last year, when oil and gas prices were low, energy stock IPOs were still popular.
According to data compiled by Bloomberg, LandBridge (LB.US) raised $283 million in its IPO, making it the largest oil and gas IPO on U.S. exchanges in 2024. The stock has risen over 313% since its listing in late June last year. BKV Corp (BKV.US) is the second-largest oil and gas stock IPO of the year, raising $270 million, with the stock up 33% since its listing in September last year.
In fact, some comparable stocks have also performed strongly. Cheniere Energy (LNG.US), a major liquefied natural gas exporter competing with Venture Global, has seen its stock price rise for four consecutive years, with a cumulative increase of 26% in 2024. Flowco's peer Flotek Industries (FTK.US) saw its stock price rise by 143% last year.
Data compiled by Bloomberg indicates a generally optimistic outlook for the U.S. IPO market in 2025, with 2024 transactions raising $43 billion, an increase of over 60% compared to 2023. However, this figure is still below the pre-COVID average, and the recent rise in U.S. Treasury yields has raised some concerns.
As Venture Global and Flowco prepare to go public, rising inflation expectations and higher commodity prices have propelled the oil and gas sector to become the best-performing sector of the S&amp;P 500 index this year, which also helps to stimulate enthusiasm for more deals in the field
Schuster stated, &#34;These attractive old economy assets contain many opportunities and have sparked strong interest among people.&#34;

After experiencing the worst year since 2003, the U.S. energy sector is seeing a revival in the initial public offering (IPO) market. In 2024, only 6 energy companies went public, raising $667 million, the lowest level in 21 years, but this is expected to be surpassed. Companies like Venture Global Inc. and Flowco Holdings Inc. plan to raise funds, and market sentiment has improved due to rising commodity prices and Trump's pro-oil policies. Experts believe that more excellent energy stock IPOs will emerge in the future

- The energy sector is rebounding in the U.S. IPO market after its worst year since 2003, with significant transactions emerging.  
- In 2024, only 6 energy companies raised $667 million, the lowest in 21 years, but upcoming IPOs from Venture Global Inc. and Flowco Holdings Inc. could surpass this amount.  
- Factors such as rising commodity prices, strong IPO performance, and supportive policies from President Trump are contributing to a positive outlook for energy transactions in 2025.

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Last year was miserable, but this year is in full swing! U.S. energy stocks IPO welcome a big explosion