PDC Energy Upsizes Common Stock Offering
A slightly larger than previously expected chunk of PDC Energy going on the market. The company has expanded its underwritten public common stock issue from the originally planned 3.75 million shares to 4.5 million. The estimated gross take of the offering is $243 million, putting the per-share price at $54. Additionally, the company's underwriter has been granted a 30-day purchase option for up to an additional 675,000 shares to cover over-allotments, if any.
PDC Energy will use the proceeds of the offering to accelerate its drilling programs. The firm also said that it might also utilize some of the funds for acquisitions in the Utica Shale.
The sole underwriter of the issue is Bank of America unit Merrill Lynch. The offering is expected to close on or around this coming Friday.
Currently, PDC Energy has just under 30.5 million shares outstanding, and its stock most recently closed at $55.22 per share.
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