Bakken pioneer, shale expert issuing mineral acquisition IPO

By Luke Geiver | April 09, 2019

A Bakken pioneer credited with drilling the shale play’s first long-lateral, high-frac stage well is helping to take a shale oil and gas mineral acquisition’s company public. Bud Brigham, founder of Brigham Exploration Co., and his team from Brigham Minerals have issued an initial public offering. The Austin, Texas-based entity is setting the common stock price at $15 to $18 per share.

The company acquires and actively manages mineral and royalty interests in the major U.S. shale plays, including the Permian, SCOOP/STACK, DJ Basin and the Williston Basin. Along with work to develop other assets, Brigham Minerals leverages “its highly experienced technical evaluation team to continue to execute upon its scalable business model of sourcing, methodically evaluating and integrating accretive minerals acquisitions in the core of these top-tier, liquids-rich resource plays.

Mineral management and acquisition firms have been growing across the U.S. over the past four years. Each company works to assess and analyze future drilling locations and producing zones before working with mineral and royalty owners to acquire the assets. Brigham Minerals said it can pay in roughly 30 days after signing an agreement. The idea, according to mineral management firms, is to provide the asset owners with revenue in a quicker time frame than it may be possible with revolving drilling and completion schedules that keep mineral owners uncertain of when—of if—their assets will be activated by drilling and completion. The management service also helps mineral owners eliminate time-consuming paperwork to fractionalized, inherited interests or simplify an estate.

Brigham’s team has a history of finding value in oil and gas assets. Brigham Exploration was a leading innovator in the Williston Basin, Bakken, and Three Forks oil resource plays and was the first operator in the basin to drill a long-lateral, high-frac stage well substantially expanding the play into far western North Dakota. The Company accumulated 375,000 net acres in the Williston Basin and had drilled approximately 100 long-lateral, high-frac stage wells prior to its sale to Statoil ASA in December 2011 for $4.5 billion, according to the company. Brigham Resources also built an 80,000 net acre position in the Southern Delaware Basin and subsequently sold its position to Diamondback Energy in February 2017 for $2.5 billion.    

Brigham Minerals will issue 13.5 million common shares of Class A common stock on the New York Stock Exchange under the ticker symbol MNRL.