PetroQuest Energy Inc. (NYSE: PQ) has filed to raise up to $200 million million in securities in a mixed securities shelf. Technically, this filing is to replace an existing shelf registration that is expiring on April 11. As this one has been all over the board in share price, we wonder about the chances of this being just another shelf registration replacement for an expiring shelf.
The company has filed to sell Debt Securities, Common Stock, Preferred Stock, Depositary Shares, Warrants, Purchase Contracts, and/or Units. This are guarantees of non-convertible debt and ecurities of PetroQuest Energy, Inc. by PetroQuest Energy, L.L.C. and TDC Energy LLC. As with many shelf registrations, no underwriter has been named nor have any terms been indicated if any securities sales were to take place.
The company noted that it currently has no immediate plans to use the registration statement for any specific financing, but it, as is common elsewhere, keeps a filing active in case financing is needed. Due to the stock price and due to the current situation you never know if that “If, Then” scenario is closer rather than farther this time around.
PetroQuest Energy, Inc. is an independent energy company engaged in the exploration, development, acquisition and production of oil and natural gas reserves in the Arkoma Basin, East Texas, South Louisiana and the shallow waters of the Gulf of Mexico. What is interesting about this is that the foiling of $200 million is actually about 1.5-times the size of the company’s current market cap of $126.55 million. At $2.51, it is still down almost 90% from the highs of its 52-week range and it has traded in a range of $0.61 to $29.18 in that time.
The company has also recently boosted its production guidance and gave liquidity guidance. On March 23, it said its cash balance as of February 28, 2009 was approximately $30 million, about $6 million more than December 31, 2008; and it said that cash should grow through internally generated cash flow. It also estimated that its hedge contracts as of February 28, 2009 were valued at approximately $58 million.
Simultaneously, it raised production guidance for its first quarter 2009 production guidance to approximately 110 to 112 MMcfe per day from its previously issued guidance of 105-110 MMcfe per day. After a recent transaction, PetroQuest has approximately 17.4 Bcfe of hedged volumes for the remainder of 2009, and it has an average floor of $7.34 per Mcf and $100 per barrel. Based on the midpoint of previously issued 2009 production guidance, approximately 67% of the 2009 production has been hedged.
JON C. OGG