By Alex Gennaro Texas Power is looking to go public, but the company has a lot of hurdles to clear before it can get going.
The Texas Power bar and restaurant chain is looking for an initial public offering to raise $1.4 billion.
The company plans to use the money to expand its Texas footprint and invest in other Texas-related businesses.
Texas Power will be the largest energy utility in Texas and is planning to build a new gas-fired plant at its existing headquarters in Austin.
It plans to spend $250 million to acquire a number of existing power companies, including a refinery and oil-and-gas processing facility in Dallas.
The acquisition will allow Texas Power to make a more aggressive push for a more diversified energy portfolio.
Texas Powers is one of the most active energy companies in the world.
Its holdings include several gas companies and oil and gas producers.
But its biggest energy assets are power plants, like its power bar and restaurants, and gas-burning appliances, like the fryer at the Texas Power headquarters in Dallas, where Texas Power currently operates its gas-powered furnaces.
The energy company’s plan to take on gas producers and oil companies is expected to increase its presence in Texas.
In an IPO filing last year, Texas Power said it expects to generate $1 billion in annual revenue from the sale of its power companies by 2035, compared with a projected $600 million from the energy assets in its existing portfolio.
It also expects to grow its total assets to $2.5 billion from $1 million in 2019.
Texas Public Utility Commission chairman Scott Gessler said the company will need to raise as much as $1,600 million in an initial offering, and it is planning a $100 million financing round.
Texas PUC rules state that a company must offer at least 50% of its shares for an IPO, but Gessler told Reuters the company could raise as little as 25%.
Texas Puc also has a provision in its IPO that allows the company to issue $1 bonds.
That means Texas Power could sell its shares to private investors, but there are no public details on that proposal yet.
Texas Energy Partners, the company that will finance the IPO, is led by former Texas Power CEO Michael O’Leary.
The firm has raised $3 billion in financing and plans to sell the energy companies it has acquired.
The new company will have a board of directors, including O’Connor, who joined Texas Power in 2001, as well as two board members from Texas Power’s Texas operations.
Texas energy analysts expect the IPO to be a big win for the Texas market.
“The Texas market is a huge market for power companies and the Texas Public Utilities Commission is not looking to get into the gas business,” said David Sautter, an analyst at the New York-based firm S&P Dow Jones Indices.
“But the energy sector in Texas is going to be big in 2035.”
Texas Public Service Commission Chairman Mark Jones said the state is committed to making Texas energy more competitive and has invested billions in its grid.
Texas has an infrastructure deficit of about $30 billion, but O’Neill has pledged to help improve the state’s infrastructure.
The state is also investing in electric transmission lines, which is one area where Texas has the lowest levels of transmission investment in the nation, Sautner said.
Texas’s power industry is in the midst of a transition, with utilities trying to improve the reliability of their transmission systems, said Matt Miller, an energy analyst with the Chicago-based energy research firm IHS Global Insight.
“Texas is a good example of a market that is in a transition period right now,” Miller said.
“There is an economic opportunity here and a need for utilities to have the ability to invest and to create new markets.”
The state of Texas is one-third the size of Texas, and has a population of about 1.3 million.
Its largest industry is oil and natural gas.
The current share of electricity generation in Texas comes from gas-driven furnaces that burn natural gas, but it is expected that gas-fueled furnaces will increase in the future, and that demand for power will grow as well.
Texas is also home to a number other major oil and oil sands producers.