It looks like we have more offerings coming to market, or at least more and more are being contemplated. Whiting Petroleum Corporation (NYSE: WLL) announced that its secondary offering for 8 million shares of common stock was priced at $29.00 per share.
Merrill Lynch & Co. is the book-running manager, and they weregranted a 30-day overallotment option to purchase an additional 1.2million shares.
Whiting sees the net proceeds at roughly $222.2 million afterdiscounts, commissions, and expenses. The company intends totemporarily reduce amounts outstanding under its credit facility and toincrease its 2009 base capital budget to develop incrementalopportunities it has identified in the Northern and Central Rockies.But the company can also either further develop these incrementalprojects or it can expand previously announced projects under the 2009base capital budget.
This looks like it is at no discount on the surface since it closed at$29.14, but this was anticipated to be coming at the end of this weekor the start of next. Shares closed down 7% at $29.14 today, andshares were at $36.00 on Monday before the intent to offer the stockwas announced.
Jon C. Ogg
January 29, 2009
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