The Mad Dash to Raise Cash Continues: Carrizo & Rice Energy

The “get cash through the door” game continues for both drillers (E&P) and midstream companies. We have two more drillers looking to get cash through the door in two different ways. Last week, Carizzo Oil & Gas, an independent oil and gas company with drilling operations in several shale plays including the Marcellus and Utica, floated a plan to use equity financing (selling more of the company via shares of stock) to raise $205 million by floating 4.5 million shares of stock for $45.50 per share. Carrizo, which has no plans to drill new wells in the northeast in 2015 (see Carrizo Cuts Budget 35%, No Drilling Planned in Utica/Marcellus in 2015), will use the money to pay down debt. Meanwhile, Rice Energy, which is a “pure play” energy company targeting the Marcellus/Utica, announced yesterday they’re going the IOU route–issuing new notes, or promises to repay loans (incurring more debt), hoping to raise $400 million to be used for “for general corporate purposes, including capital expenditures”…

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