Goodrich Petroleum to Issue Stock to Fund Drilling Expansion

Before you go, we thought you'd like these...
Before you go close icon

To help fund an increase in drilling in the Tuscaloosa Marine Shale, or TMS, region from two to five horizontal rigs by the end of 2014, Goodrich Petroleumannounced today its intention to offer 6 million shares of common stock. Underwriters of the stock offering have a 30-day option to purchase as many as 900 million additional shares, according to Goodrich.

Following the stock offering, which Goodrich said is dependent on "market and other conditions," it will have approximately 42.76 million shares outstanding, or 43.66 million shares should the underwriters exercise their options for all the additional 900 million shares.

Goodrich, according to the SEC filing related to its public offering, estimates the net proceeds will amount to $153.4 million, or approximately $176.4 million if the underwriters exercise their options. The proceeds, in addition to funding the expansion of Goodrich's TMS drilling efforts, will be used to pay down its existing senior credit facility.


Goodrich Petroleum's stock closed at $26.20 a share today, down 2.42%.

The article Goodrich Petroleum to Issue Stock to Fund Drilling Expansion originally appeared on Fool.com.

Fool contributor Tim Brugger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners