Flowco Holdings Inc. Prices IPO at $21.00-$23.00 Per Share (FLOC)

Flowco Holdings Inc. (FLOC) plans to raise $387 million in an initial public offering (IPO) on Thursday, January 16th, IPO Scoop reports. The company will issue 17,600,000 shares at $21.00-$23.00 per share.

In the last year, Flowco Holdings Inc. generated $424.8 million in revenue and $76 million in net income. Flowco Holdings Inc. has a market-cap of $1.9 billion.

J.P.Morgan, Jefferies, Piper Sandler, Evercore ISI, BMO Capital Markets and Pickering Energy Partners acted as the underwriters for the IPO and Fearnley Securities, Pareto Securities and TPH & Co. were co-managers.

Flowco Holdings Inc. provided the following description of their company for its IPO: “We provide equipment and services to optimize the production of oil and natural gas wells. (Incorporated in Delaware) The company was formed in 2024 through the merger of three companies – Flowco Production Solutions, Estis Compression and Flogistix. We are a leading provider of production optimization, artificial lift and methane abatement solutions for the oil and natural gas industry. Estis, our largest business segment, booked sales of $425 million for the 12 months that ended Sept. 30, 2024. From the prospectus:   We are a leading provider of production optimization, artificial lift and methane abatement solutions for the oil and natural gas industry. Our products and services include a full range of equipment and technology solutions that enable our customers to efficiently and cost-effectively maximize the profitability and economic lifespan of the production phase of their operations. Our principal products and services are organized into two business segments: (i) Production Solutions; and (ii) Natural Gas Technologies. Our core technologies include high pressure gas lift (“HPGL”), conventional gas lift, plunger lift and vapor recovery unit (“VRU”) solutions, all of which are overlaid by our proprietary digital technologies and solutions that enable real-time remote monitoring and control to maximize efficiencies of our products and services. These products and services, including proprietary technologies such as HPGL, which was pioneered by Flowco, hold, in their respective categories, leading positions in growing markets, and are used extensively by the largest oil and natural gas producers primarily in the U.S. We generate revenues throughout the long producing lives of oil and gas wells, which may be able to produce for decades after being drilled and completed. As of September 30, 2024, we operated a fleet of over 4,300 active systems enabling consistent revenue generation. We also sell other products and services that help our customers optimize the value of their assets. We believe that the demand for our products and services is more stable than demand for drilling and completion related services, and this demand has resulted in a more durable, recurring cash flow for our products and services than is typical in many other oilfield services. The production phase of a new oil or natural gas well begins when it is brought online. From this point forward, the rate of production is determined by the geological characteristics of the reservoir from which the well is producing, the design and construction of the wellbore from the reservoir to the surface, and the elapsed time since the well is brought online. This rate of production typically falls over time as the natural reservoir pressure declines and becomes insufficient to bring oil to the surface. This decline is particularly steep for shale wells found in onshore North American oil and natural gas basins. Artificial lift and production optimization technologies are essential to counteracting this decline, increasing production rates, and maximizing hydrocarbon recovery, all of which improve the economics of a producing well. Artificial lift enables the economic production of oil and natural gas from shale wells that would be otherwise uneconomic. As a result, operating expenses associated with production optimization are less discretionary in nature, placing our solutions on a critical path for producers to generate positive returns and maximize the value of their wells. Furthermore, the production phase is the most stable and least capital-intensive phase of the well lifecycle, driving consistent revenue, durable earnings and stable through-cycle performance for our business. Our products are chosen due to their reliability and ability to aid our customers in achieving maximum output and cash flow from their producing wells. Our products and services also integrate proprietary digital technologies that allow for remote monitoring and other enhanced uses of our equipment. Note: Net income and revenue are for Flowco Holdings LLC for the 12 months that ended Sept. 30, 2024. (Note: Flowco Holdings Inc. filed its S-1 for its IPO without disclosing the IPO’s terms on Dec. 6, 2024. Estimated IPO proceeds are $100 million, a placeholder figure. Some on Wall Street estimated that this IPO could raise between $200 million and $300 million.) “.

Flowco Holdings Inc. was founded in 1996 and has 1270 employees. The company is located at 1300 Post Oak Blvd., Suite 450 Houston, Texas 77056 Telephone: 713-997-4877 and can be reached via phone at (713) 997-4877 or on the web at https://www.flowco-inc.com/.