NEW YORK (CNNMoney.com) - With oil hitting record highs, the timing apparently couldn't be better for the debut of Complete Production Services, the latest energy stock set to go public.

The company, which provides services to companies exploring for oil and natural gas, plans to sell 21.7 million shares at an estimated $22 to $24 a share to underwriters. The stock is due to start trading Friday on the New York Stock Exchange under the symbol "CPX." Credit Suisse Securities and UBS are the lead underwriters of the deal.

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Oil and gas companies hauled in record profit and revenue in 2005. But energy IPOs have dragged this year, averaging a first-day price gain of about 3 percent compared to 19 percent last year, according to Dealogic, a consulting firm that tracks mergers and IPOs for the investment banking industry.

But with oil prices rallying to dizzying heights once more, energy stocks may again start to catch the eye of investors. U.S. crude prices jumped above $72 a barrel Wednesday to another record and are up about 13 percent this year on growing demand, geopolitical uncertainty and problems at refineries.

"Although investors have basically had their fill of energy stocks, the fundamentals still point to a very strong sector, and it's becoming increasingly difficult to ignore," said David Menlow, president of IPOFinancial.com, an independent research firm.

Complete Production Services provides equipment for oil and gas companies, and offers services that help firms cut costs and improve efficiency. It is about 70 percent owned by private equity firm SCF Partners.

A competitor with oilfield services giants such as Halliburton (Research) and Schlumberger (Research), Complete Production's sales hit $757.7 million in 2005, more than double its revenue in 2004. The company reported a loss in 2002, but its net income has steadily increased since then and rose to $53.9 million last year.

The Houston-based firm operates in major oil producing regions in the United States, as well as Canada and Mexico, and it's betting on increased natural gas activity in North America to drive its business.

The exuberance in the energy market is likely to tap into the emotional side of investors, and if they believe that oil prices are going to keep rising, then related IPOs are likely to move higher in tandem, according to Menlow. "It's a situation of all boats rising with the tide," he said.

But volatility is the name of the game when it comes to the oil and gas sector, and Complete Production's business rides the energy market roller coaster. Crude prices may be back at all-time highs, but spot natural gas prices have tumbled from the record $15 per thousand cubic feet (mcf) they hit in December to around $8 mcf.

The Energy Information Administration expects natural gas prices to keep sliding for a bit, but sees them gaining ground next year. "Concerns about potential future supply tightness and continuing pressure from high oil market prices are keeping expected spot natural gas prices for the next heating season at high levels," the government agency said in its latest energy outlook report.

Complete Production also cited the potential for excess capacity in the industry and its concentrated customer base as possible risks to its business. The firm's top five customers accounted for about one-fifth of its revenue last year, according to its prospectus.

While natural gas prices tend to swing wildly, the industry does need to keep reinvesting in its production capacity, said Kurt Hallead, managing director and energy analyst at RBC Capital Markets.

"The industry needs to invest incremental amounts of capital every year not only to offset the depletion factor but also to meet demand growth," he said.

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