Denver-based Extraction Oil & Gas LLC said Thursday it expects to raise as much as $600 million in a public offering, which would value the Rocky Mountain-focused producer at about $2.6 billion.

The exploration and production (E&P) company, backed by private equity Yorktown Partners LLC, said in a regulatory filing it would offer 33.3 million shares in an initial public offering (IPO) at $15.00-18.00/share. The company tentatively has scheduled the launch for the week of Oct. 10 and plans to be listed on Nasdaq under “XOG.” Cash proceeds are earmarked for debt repayment.

Extraction was founded in 2012, and from June 2015 to June 2016 it booked $215 million in sales. In the Greater Wattenberg field, the company is developing a leasehold east of Greeley, CO, in Weld County (see Shale Daily, July 1). The plan is to drill 24 wells, install 18 oil tanks, two water tanks 24 separators, two meter houses, four vapor recovery units, eight emission control devices and two vapor recovery towers.

Energy IPOs lost their sheen as commodity prices fell, but there are a few signs they may be gaining in favor.

Riverstone Holdings LLC’s blank check producer Silver Run Acquisition Corp. was the first this year to take the plunge, debuting on Nasdaq in February and securing $450 million to begin purchasing energy assets (see Shale Daily, Feb. 25).Two weeks ago Noble Energy Inc. launched Noble Midstream Partners LP, raising above expectations at $281 million on its first trading day on the New York Stock Exchange (see Shale Daily, Sept. 15). Among the private equity-backed energy firms tentatively set for IPOs is Mammoth Energy Services Inc., whose top customer is Gulfport Energy Corp. (see Shale Daily, Sept. 8).

According to Renaissance Capital, which tracks IPOs, the U.S. market overall improved year/year during 3Q2016, as 33 deals raised 46.1 billion, which was 20% higher than in 3Q2015 by proceeds. Accounting for two-thirds of IPO activity in the quarter were technology, with 10 deals versus one a year ago, and healthcare, at 11 versus 18.

The upcoming U.S. election and Federal Reserve Bank policy “may create some overhang in the fourth quarter,” but “the IPO market is well on track to end the year with over 100 IPOs and enter 2017 on stronger footing,” Renaissance said in a note Friday. IPOs during 3Q2016 “provided exits for both private equity (10) and venture capital (13) backers, though aggregate proceeds are still below past cycles with many large offerings on hold.”