North American oil and gas companies covered by S&P Global Market Intelligence raised $2.55 billion in April, most of which came from debt offerings.

The sector completed nine common equity offerings, six debt offerings and one preferred equity offering during the month. About $1.79 billion came from debt offerings, $489.3 million came from common equity offerings, and $280 million came from preferred equity offerings.

Amount of capital raised drops YOY

Looking at the first four months of the year, all oil and gas segments experienced a year-over-year decline in capital raised through the end of April. Oil and gas storage and transportation companies raised the most capital, with $8.10 billion year to date, but the amount was still down 30.6% year over year.

Exploration and production companies raised $5.94 billion year-to-date, down 54.8% year over year. Refining and marketing raised $980 million, down 79.6% year over year.

Companies behind the biggest offerings

The largest offering for the month came from Earthstone Energy Inc. The company issued $550 million of 8.000% of senior notes due 2027 and planned to use the proceeds for general corporate purposes and redemption or repayment of debt securities.

Other large debt issuers during the month included Vermilion Energy Inc., Holly Energy Finance Corp. and Hess Midstream Operations LP, which each offered $400 million. Vermilion Energy issued $400 million of 6.875% senior unsecured notes due 2030 and planned to use the net proceeds to reduce the amount outstanding on its credit facility. Holly Energy Finance issued $400 million of 6.375% senior unsecured notes due 2027 and planned to use the net proceeds to partially repay outstanding borrowings under its revolving credit agreement. Hess Midstream issued $400 million of 5.500% senior notes due 2030 and planned to use the net proceeds from the offering to repay the borrowings under its revolving credit facility.

Outside of debt offerings, Excelerate Energy Inc. had a large common equity offering that raised $441.6 million. Excelerate Energy planned to use the proceeds of its initial public offering to fund its growth strategy, including projects in Brazil, Albania, the Philippines and Bangladesh.

Earthstone Energy raised $280 million in a preferred equity offering for 280,000 convertible preferred shares priced at $1,000 per share. It planned to use the proceeds to partially fund its acquisition of Bighorn Permian Resources LLC.

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