Goodrich Petroleum to Issue Stock to Fund Drilling Expansion
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%.
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