initial public offerings (IPOs) trading on American exchanges

Monday, May 16, 2011

Enduro Royalty files for a $350 mln IPO

Enduro Royalty Trust — through its sponsor, Enduro Resource Partners LLC — has filed for an initial public offering of 13.2 million trust units with an expected initial price range of $24 to $26 per unit, which would raise $316.8 million to $343.2 million.

Enduro Resource Partners is a privately held company engaged in producing and developing oil and natural gas properties in Texas, Louisiana and New Mexico.


Austin, Texas-based Enduro engages in the production and development of oil and natural gas from properties located in Texas, Louisiana and New Mexico.



Enduro Royalty Trust is a Delaware trust formed in 2011 that owns royalty interests in oil and gas production properties in Texas, Louisiana, and New Mexico. The trust is entitled to receive 80% of net profits from the sale of oil and natural gas produced by privately-held Enduro Sponsor at properties in the Permian Basin and in the East Texas/North Louisiana regions; it then makes monthly distributions to trust unitholders. Enduro Sponsor holds interests in more than 900 net producing wells that are operated by third-party oil and gas companies. Its properties have proved reserves of about 27 million barrels of oil equivalent.

Royalty trusts pays out dividends based on selling a fixed share of production of the sponsoring company.

The underlying producing regions for the trust include the Permian Basin in west Texas and New Mexico, and properties in east Texas/northern Louisiana, according to its filing with the U.S. Securities and Exchange Commission. As of Dec. 31, substantially all of the total proved reserves relating to the underlying properties were operated by third party oil and natural gas companies.

Enduro sponsor's oil and natural gas properties in the East Texas/North Louisiana region were acquired from Denbury Resources Inc. (DNR) in December. Its oil and natural gas properties in the Permian Basin of Texas and New Mexico were acquired from Samson Investment Co. and ConocoPhillips (COP) in January and February, respectively.

About 47% of the operating area's proved reserves of 27.1 million barrels of oil equivalent were oil as of the end of last year.

For 2010, the predecessor underlying properties reported excess of revenue over direct operating expenses fell 2.1% to $15.1 million as revenue declined 7.2% to $22.4 million, more than offsetting at 16% drop in operating expense.


The filing did not reveal how many units the company planned to sell or their expected price, but said Enduro will use the proceeds to repay debt.

Barclays Capital will be the underwriter, the company said in a filing with the U.S. Securities and Exchange Commission.


Lead Managers

  • Barclays Capital
  • Citi
  • Goldman, Sachs & Co.


It intends to list its units on the New York Stock Exchange under the symbol "NDRO."

About Enduro Royalty Trust

Enduro Royalty Trust is a Delaware statutory trust formed by Enduro Resource Partners to own a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from certain of Enduro Resource Partners’ properties in the States of Texas, Louisiana and New Mexico.

About Enduro Resource Partners LLC

Enduro Resource Partners is a privately-held company engaged in the production and development of oil and natural gas properties located in Texas, Louisiana and New Mexico.

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