PDC Energy Offers 5.15M Shares of New Stock, Wants to Get $263M

Something we’ve noticed about energy companies offering more stock as a way of generating cash. Almost always they issue one press release to announce they are offering X shares of new stock. And a few hours later they issue a second press release announcing they’ve “upsized” the offering–offering more shares. Are they trying to give the impression that there was “just so much darned demand we simply had to offer even more shares to meet all the demand”? That’s what it looks like. Of course it’s just a marketing tactic (if you ask us). They all seem to do it. The latest example is from PDC Energy, a driller in the Wattenberg Field in Colorado and the Utica in Ohio. PDC paused its Utica drilling program in 2015 with plans to do a little more drilling in the Utica in 2016. PDC issued its pair of press releases yesterday, the first saying they will float 4 million new shares of stock, the second saying that number was upsized and they would instead offer 5.15 million shares with hopes to raise $263 million…

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