Texas Business Report: The Stock Market Got a Bit Craftier


Finance-minded crafters, take note: Michaels has gone public. The Irving-based retailer began selling shares on Nasdaq today following a $472 million IPO on Thursday with 27.8 million shares priced at $17 apiece, Businessweek reports. That’s the bottom of the company’s initial range of $17 to $19, an outcome that could indicate “tepid demand for its stock,” according to the Associated Press.

Bain Capital Partners LLC and Blackstone Group LP, Michaels’ owners since 2006, continue to own a combined 86 percent of the company, but they have both expressed interest in making an exit in the near future, per the Dallas Morning News.

The Bottom Line: For now, Michaels is seemingly avoiding the struggles plaguing many other brick-and-mortar retailers. Its net income grew by 22 percent over the last year to $243 million, and the chain is gradually expanding toward a goal of operating 1,500 stores — according to the AP, the company plans to reach the 1,300 mark by the end of this fiscal year. However, the wire service notes, “Michaels has been late to the online party, launching its e-commerce business only earlier this year.” 

Texas Business Report: Moto Ex

Moto Exits

Barely a year after opening the nation’s first smartphone manufacturing factory in Fort Worth, Motorola has announced plans to close the plant by the end of this year. The Google-owned device maker is chalking up the closure to “weak sales and high costs” of labor and shipping, falling short of its objective to “challenge conventional wisdom that manufacturing in the U.S.

Texas Business Report: Going Offshore

Drilling in the Deep

Two energy exploration giants are shifting the focus of their Texas operations. On Wednesday, Freeport-McMoRan Copper & Gold Inc. sold $3.1 billion worth of assets in the Eagle Ford Shale. The next day, it used the proceeds from that sale to buy several deepwater oil production development projects and leases in the Gulf of Mexico from Houston-based Apache Corp. in a deal worth $1.4 billion, the Houston Business Journal reports.

While Freeport-McMoRan is transitioning from land-based drilling projects to deeper offshore sites, Apache is moving away from deepwater and ramping up its investments in projects at shallower depths—which “have quicker cycle times, require less capital and provide more options to bring oil and gas to market,” according to Apache executive vice president and COO Thomas E. Voytovich. 

The Bottom Line: The Apache deal is in line with the company’s newfound strategy of “streamlining and focusing on low-risk endeavors,” the HBJ reports. It recently unloaded large blocks of assets in the Gulf, Canada, and Argentina, and Voytovich says the company “continues to pursue joint venture and/or monetization opportunities for its deepwater prospects.” 

Texas Business Report: Anadarko Petroleum Pays $5.1 Billion to Settle Pollution Case


The Woodlands-based Anadarko Petroleum said Thursday that it will pay $5.1 billion to clean up toxic pollutants at more than 2,700 locations around the country, settling a long-running legal battle with the federal government, the New York Times reports.


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