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LRR Energy, L.P. (LRE) |
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
LRR Energy, L.P. (NYSE:LRE) is a limited partnership that was formed to own and operate natural gas and oil properties in North America. The partnership was formed by those related to Lime Rock Resources. The general partner of LRR Energy, LP is LRE GP which is controlled by Lime Rock Management LP. LRR Energy LP will have opportunities to purchase old wells from the affiliates of the general partner as well as to invest along side affiliates of the general partner. [1]
Business Overview
For the full year 2010, the total revenue of the company's properties were $139.7M. This compares to $87.6M in 2009. The net income in 2010 was $22.3M, while it reported a net loss of $6.1M in 2009.[2]
New Updates
The company's initial public offering of stock on the NYSE occurred on November 10, 2011. The company offered 9.4M shares each for $19. This was at the bottom of the $19-$21 price range. The deal raised a total of $179M. The lead mangers of the deal were Wells Fargo, Raymond James, and Citi.[3]
Trends & Forces
High cost for focus on low risk investments
LRR Energy is focused on pursuing properties which are considered to be long-lived and low-risk. Since these properties are highly valuable, LRR Energy will likely have to expend greater amounts of cash in order to acquire these properties. This means that LRR Energy's returns on its capital expenses will more predictable, but, on average, lower in return. LRR Energy may be able to escape this low return problem by leveraging its associating with Lime Rock and its affiliates. [4]
- ↑ LRE S-1/A 2011 PROSPECTUS SUMAMRY "LRR Energy, L.P." pp.1-2
- ↑ LRE S-1/A 2011 PROSPECTUS SUMAMRY "Summary Historical and Pro Forma Financial Data" pp.17-18
- ↑ Renaissance Capital - IPO Home "LRR Energy, L.P. prices IPO at $19, at low end of the range" 11 Nov 2011
- ↑ LRE S-1/A 2011 PROSPECTUS SUMAMRY "Our Business Strategies" pp.3
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