Last year was dismal, but this year is full steam ahead! US energy stocks IPOs are experiencing a major boom.

After experiencing the worst year since 2003, the energy industry is making a comeback in the U.S. initial public offering (IPO) market, with significant deals emerging one after another. Data compiled by Bloomberg shows that in 2024, only 6 energy companies were listed on U.S. exchanges, raising $667 million, the lowest level in the industry in 21 years. This number is likely to be surpassed in January alone. U.S. natural gas exporter Venture Global Inc. is seeking to raise $2.3 billion through an IPO, while oilfield service company Flowco Holdings Inc. plans to raise nearly $400 million. The IPO size for U.S. Energy Corp. in 2024 fell to a 21-year low Reasons for the rebound in trading include rising commodity prices, recent strong performance of energy stock IPOs, and the pro-oil policies of U.S. President-elect Donald Trump. Josef Schuster, founder and CEO of IPO index provider Ipox Schuster LLC, focused on newly listed stocks, stated that all these factors suggest a "bright outlook" for more energy trading. Schuster stated that Trump's support for U.S. liquefied natural gas exports and expectations for the energy industry will help boost market sentiment. Schuster said, "I think the market is ready for a wave of excellent energy stock IPOs." He added that energy stock IPOs have been popular, even with low oil and gas prices last year. According to Bloomberg data, LandBridge (LB.US) raised $283 million in its IPO, the largest oil and gas IPO on U.S. exchanges in 2024, with the stock rising over 313% since its listing at the end of June last year. BKV Corp (BKV.US) was the second largest oil and gas IPO of the year, raising $270 million, with the stock rising 33% since its listing in September last year. Indeed, some similar stocks have also shown strong performance. Cheniere Energy (LNG.US), a large liquefied natural gas exporter competing with Venture Global, has seen its stock price rise continuously for four years, with a cumulative increase of 26% in 2024. Flowco's peer, Flotek Industries, Inc. (FTK.US), saw its stock price rise 143% last year. Bloomberg data shows that the outlook for the U.S. IPO market in 2025 is generally optimistic, with transactions in 2024 raising $43 billion, an increase of over 60% from 2023. However, this number is still below the pre-COVID-19 average level, and concerns have been raised with the recent rise in U.S. Treasury yields. As Venture Global and Flowco go public, inflation expectations and rising commodity prices are driving the oil and gas industry to become the best performing sector in the S&P 500 index this year, which also helps to fuel enthusiasm for more trading in the field. Schuster said, "These attractive old economy assets offer many opportunities and have sparked strong interest in people."