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Energy underwriter plans IPO

Gargi Chakrabarty, Rocky Mountain News

Published September 14, 2006 at midnight

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Wall Street is excited about oil and gas, and Petrie Parkman & Co. wants to cash in on it with an initial public offering.

The Denver-based investment bank specializing in the energy sector hopes to raise $115 million, according to a filing with the Securities and Exchange Commission on Wednesday.

Since its founding in 1989, the company has grown into a sizable energy investment bank and has advised more than 200 mergers and acquisitions - many of them in Denver - divestitures and capital-raising deals with a total value of about $84 billion.

A call to the 53-person company was not returned.

Petrie Parkman's prospectus is preliminary, so the company does not give an indication of how many shares will be sold or what the total valuation of the company will be.

"I think there is a lot of capital available in the equity market for energy investment and financing, in particular for the oil and gas industry," said Ken Wonstolen of the Colorado Oil and Gas Association.

Petrie Parkman was ranked No. 1 based on the number of merger and acquisition transactions in the domestic exploration and production sector in 2005, Bloomberg reported.

Recently, it advised the $5.3 billion sale of Denver-based Western Gas Resources to Anadarko Petroleum and the $2.7 billion sale of oil and gas assets of Chief Holdings to Devon Energy and Crosstex Energy.

Wonstolen said he didn't think becoming a publicly traded company would hamper Petrie Parkman's business as an underwriter for public offerings and an adviser on mergers and acquisitions.

For the year ended Dec. 31, 2005, the company posted revenues of $74.3 million and net income of $4.2 million, up 28 percent and 18 percent respectively compared with 2004.

The company began underwriting equity offerings in 1992. Since then through June 30, the company co-managed 80 public offerings for energy companies totaling proceeds of about $14 billion.

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