Newly formed Houston-based mezzanine energy investment firm NGP Capital Resources Co. (Nasdaq: NGPC) had completed its IPO, pricing 16 million shares at $15 each, raising $240 million for investment in small and midsize firms. The firm will invest primarily in E&P companies but may also do deals in the midstream, downstream, utilities and coal businesses. Investments will range from $10- to $50 million in size, generally as debt with some equity component. The firm, which is structured as a business development corporation, was formed this summer by energy private-equity firm Natural Gas Partners and is led by John Homier as president and chief executive and Richard Bernardy as chief financial officer. They were previously with M1 Energy Capital Securities LLC, Deutsche Bank and Banc of America Securities. Natural Gas Partners reports this mezzanine investment vehicle will complement, rather than compete, with its main private-equity business. Raymond James was sole book-runner and joint lead manager of the IPO with Friedman Billings Ramsey. Co-managers were Advest Inc., BB&T Capital Markets, D.A. Davidson & Co., Ferris, Baker Watts Inc., Morgan Keegan & Co. Inc., Oppenheimer & Co., RBC Capital Markets, Southwest Securities Inc., Stifel, Nicolaus & Co. Inc. and Wunderlich Securities Inc. Lime Rock Partners III LP has been closed at $425 million in commitments from endowments, foundations and public pension funds. Westport, Conn.-based, energy-focused private-equity firm Lime Rock Partners now has $850 million under management. Investments will be made in growth-stage, upstream oil, oil-service and oil-technology companies. Lime Rock also has offices in Houston, Aberdeen and Calgary. Its first fund was closed in October 1998 with $105 million in commitments and its second was closed in October 2002 with $320 million. The firm has invested in 26 companies in the U.S., Canada and Europe, including Sensa, Deer Creek Energy, Venture Production Co., Roxar, Hercules Offshore, PSL Energy Services, Serimer DASA and U.S. Exploration Holdings. More than 80% of the investors in the third fund were previous investors. Monument Group assisted in the fund-raising process as it did for Lime Rock Partners II LP. Jonathan Farber, a Lime Rock managing director, says, "We...were able to raise this fund on an accelerated timetable so that we can seize the good investment opportunities in high-growth companies in the energy industry." John Reynolds is also a managing director. Small-cap companies received relief from the SEC-a 45-day extension on part of the paperwork due under the Sarbanes-Oxley Act. The change affects "accelerated filers" with market caps of under $700 million. Gasco Energy Inc., Denver, has moved to the American Stock Exchange as GSX. It had traded on the Bulletin Board. Five-year-old EnergyNet, Amarillo, Texas, has reached $100 million of property sales-all online. "I am pleased to report that EnergyNet has tripled its market share during 2004 and continues to register new buyers and sellers on a daily basis," says Bill Britain, president and chief executive. The IPAA is launching another Oil & Gas Investment Symposium (OGIS)-this one especially for small-cap producers. The Small-Cap OGIS will be held Feb. 7-8 at the Ritz Carlton in Palm Beach, Fla. IPAA's OGIS programs in New York City and San Francisco have been well received by presenters and potential investors. The small-cap program will feature publicly held companies with market caps generally under $500 million. For more information, call Bill Moyer at 202-857-4767. Sterne, Agee & Leach is temporarily terminating coverage on oilfield services and equipment stocks, due to the departure of analysts Roderick D. McKenzie Jr. and Samir G. Chauhan. Baltimore-based regional brokerage firm Ferris, Baker Watts Inc. has retained equity analyst Curtis Trimble to cover oil and gas stocks under $2 billion. Trimble has launched coverage of ATP Oil & Gas, Contango Oil &Gas Co., Edge Petroleum, Goodrich Petroleum, KCS Energy and Mission Resources. Trimble is also covering five small-cap oil-service names. He can be reached at 410-659-4654. Jeff Parker has been named president of New Orleans-based Howard Weil Inc. Investment Securities. William H. Walker will assume the role of chairman. The pair have worked together in securities for the past 20 years. Walker was president.
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