Athlon Energy, created in August 2010 by two former Encore Acquisition execs with backing from Apollo Global Management, hopes to raise about $280 million after expenses with a public stock offering, according to its filing last week with the Securities and Exchange Commission. The company in April raised $500 million in a private debt placement. Athlon's operations include more than 200 wells in the Permian Basin of West Texas with average daily production equivalent to 12,000 barrels of oil a day in June, according to its filing. The company in 2012 earned $14.7 million on revenues of $157 million, the filing states.
Athlon plans to sell as many as 15.8 million shares for $18 to $20 a share, the filing says. It will use the proceeds to repay debt, fund its drilling program and for other purposes, including acquisitions. After the issue the company will have 82 million shares outstanding, giving it a market value of nearly $1.6 billion at $19 a share, the mid-point of its price range. Apollo Funds also may sell up to 2.4 million shares of its own holdings if the demand is there. Its stock ticker on the New York Stock Exchange will be ATHL.
Athlon's CEO is Bob Reeves, 43, previously chief financial officer of Fort Worth-based Encore Acquisition and Encore Energy Partners, two affiliated companies acquired in March 2010 by Denbury Resources. Kevin Treadway, 48, who headed Encore's land operations, is senior vice president of business development and land. Apollo representatives will hold three of five board seats. Its offices are at 420 Throckmorton St. in downtown Fort Worth.
-- Jim Fuquay