FTS Gears Up for IPO

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FTS International has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were given in the filing, but the offering is valued up to $100 million. The company intends to list its shares on the New York Stock Exchange under the symbol FTSI.

The underwriters for the offering are Credit Suisse, Morgan Stanley, Barclays, Citigroup, Wells Fargo, Evercore ISI, Cowen, Guggenheim and Tudor Pickering Holt.

This is one of the largest providers of hydraulic fracturing services in North America. Its services enhance hydrocarbon flow from oil and natural gas wells drilled by exploration and production companies in shale and other unconventional resource formations. Customers include ConocoPhillips, Devon Energy, EOG Resources, Diamondback Energy, EQT, Newfield Exploration, Range Resources and other leading companies that specialize in unconventional oil and natural gas resources in North America.

This is one of the top three hydraulic fracturing providers across its operating footprint, which consists of five of the most active major unconventional basins in the United States: the Permian Basin, the SCOOP/STACK Formation, the Marcellus/Utica Shale, the Eagle Ford Shale and the Haynesville Shale.

FTS has a 1.6 million total hydraulic horsepower across 32 fleets, with 25 fleets active as of August 1, 2017. It is currently experiencing a surge in demand for our services, which has led the company to reactivate eight fleets since the beginning of 2017. Based on continued requests from customers for additional fleets, the firm is in the process of reactivating additional equipment at its in-house manufacturing facility.

The company intends to use the net proceeds from this offering for working capital and general corporate purposes.