Texas Capital Securities Initiates Equity Research Coverage

Coverage Initiation - Texas Capital Securities initiated coverage of 38 companies in the energy and energy-adjacent sectors, including upstream, agribusiness, biofuel, and energy-adjacent sectors [1] - The newly formed Equity Research team aims to enhance product and service capabilities, investment insights, and dedicated coverage of the energy industry and adjacent sectors [1] - The coverage expansion aligns with the strategic goal of supporting clients focused on transformative opportunities in the energy and adjacent sectors [2] Strategic Focus and Industry Insights - The coverage will focus on three core areas: Upstream Energy, Energy Adjacent, and Agribusiness and Biofuels [2] - The U S energy policy, particularly in the Permian Basin, is seen as a key driver for global AI data center buildout due to abundant natural gas, water access, renewable power integration, and land availability [3] - The firm aims to establish itself as the "first call" for small- and mid-cap U S-listed public companies, leveraging its full-service platform for expertise, advisory services, and capital [2] Sector-Specific Coverage Details Upstream Energy - The sector is market-leading in return of capital metrics and has re-rate potential for companies with significant natural gas exposure [5] - Coverage includes 23 stocks: 17 Exploration and Production (E&P) companies, four Mineral and Royalty companies, and two Minerals-like MLPs [5] Energy Adjacent - These sectors are positioned to benefit from transformative trends such as AI data center power demand growth, LNG terminal buildout, and tightening water handling fundamentals in the Delaware Basin [5] - Coverage includes eight stocks: land management and royalty companies, water handling operators, natural gas contract compression operators, clean energy technology, and a behind-the-meter power (BTM) generation provider [5] Agribusiness and Biofuels - Companies in this sector are expected to benefit from evolving U S renewable fuel policies [5] - Coverage includes seven stocks: three vertically integrated Renewable Diesel (RD) - Sustainable Aviation Fuel (SAF) operators, three vertically integrated renewable natural gas (RNG) operators, and one global agribusiness and food company [5] Company Background - Texas Capital Bancshares, Inc (NASDAQ: TCBI) is the parent company of Texas Capital Bank and operates as a full-service financial services firm [4] - The firm was founded in 1998 and is headquartered in Dallas, with offices in Austin, Houston, San Antonio, and Fort Worth [4] - Texas Capital offers commercial banking, consumer banking, investment banking, and wealth management services [4][6]