Capital will fund pending acquisition of properties in Midland Basin, development Spraberry/Wolfcamp acreage
Midland, Texas-based Pioneer Natural Resources Company announced Wednesday it has priced an underwritten public offering of 5.3 million shares of its common stock for gross proceeds of $827 million, sending shares down three per cent.
Pioneer (NYSE:PXD) has granted the underwriters an option for 30 days to purchase up to an additional 787,500 shares of the company’s common stock. Credit Suisse, J.P. Morgan, Deutsche Bank Securities and Morgan Stanley are acting as joint book-running managers for the offering.
The offering is expected to close on or about June 21, subject to customary closing conditions.
A portion of the proceeds from the offering will fund Pioneer’s recently announced pending acquisition of oil and gas properties in the Midland Basin.
The remaining portion of the proceeds for general corporate purposes, including funding the drilling program on the acreage to be acquired in the pending acquisition and continuing to develop its acreage position in the Spraberry/Wolfcamp play in West Texas, the company said in a press release.
The stock dropped $0.54 during the last trading session, hitting $162.5 and about 5,700 shares traded hands. Pioneer Natural Resources has risen 11.41 per cent since Nov. 9, 2015 and is uptrending. It has outperformed by 11.75 per cent the S&P500, according to Sonoran Weekly Review.