Did Oasis Just Increase Its Offering Substantially? -- March 4, 2015

Look at the increase, being reported now:

Oasis Petroleum Inc. announced today that it has priced an upsized underwritten public offering of 32,000,000 shares of common stock for total gross proceeds (before the underwriter's discounts and commissions and estimated offering expenses) of approximately $409.6 million. Oasis intends to use the net proceeds of this offering to repay outstanding borrowings under its credit facility and for general corporate purposes.  Oasis granted the underwriters a 30-day option to purchase up to 4,800,000 additional shares of common stock. The offering is expected to close on March 9, 2015.

Earlier this morning, the press release:

Oasis Petroleum Inc. announced today that it has commenced an underwritten public offering of 25,000,000 shares of common stock. Oasis expects to grant the underwriters a 30-day option to purchase up to 3,750,000 additional shares of common stock.  Oasis intends to use the net proceeds of this offering to repay outstanding borrowings under its credit facility and for general corporate purposes.

Or are these two separate offerings? If so, wow? 

With 100 million shares currently outstanding, it seem an additional 40 million shares (rounding) is fairly significant. On the other hand, if these are two separate offerings, 40 + 30 = 70. Almost 70 million more shares being offered? I honestly don't know. More to follow, I'm sure.

$410 million / 32 million = $12.80. Oasis shares were selling for about $13 / share yesterday.

This is just idle chatter, for my use only to help me understand the Bakken. If this information is important to you, go to the source -- perhaps your broker or your astrologer. See disclaimer. This is not an investment site. Do not make any investment, financial, or relationship changes based on anything you read here or think you may have read here. 

*************************

Exxon, Also, Raising Cash

Bloomberg is reporting:

Exxon Mobil Corp. sold $8 billion of debt in its biggest bond offering ever and the largest energy-related deal since the plunge in crude prices that began in July.

The world’s largest oil company by market value boosted the deal by about 14 percent after previously marketing $7 billion of debt.

Irving, Texas-based Exxon issued the securities as a combination of fixed- and floating-rate notes in the seven-part sale.

To put this in perspective, Apple raised about $6.5 billion in a bond sale in February, 2015.