Here's Why Investors Are Punishing Oasis Petroleum Inc. Stock Today
Shares of Oasis Petroleum (NYSE: OAS) are getting pummeled today, down more than 15% as of 12:12 p.m. EST. That sell-off comes on the heels of the company's announcement that it would buy more than 20,000 acres in the Delaware Basin, which marks quite a shift for the Bakken Shale-focused driller.
Oasis Petroleum will pay a total of $946 million for this acreage, consisting of $483 million in cash and 46 million shares of stock issued directly to the seller. The company expects to finance the cash portion by selling additional shares via a public offering, with the balance funded by its credit facility, though it plans to sell $500 million of non-core Bakken Shale assets later this year to pay down those borrowings. Oasis has already priced the stock offering, raising $305.6 million in cash through the sale of 32 million shares, though it could sell an additional 4.8 million shares if there's enough demand.
Image source: Getty Images.
Source: Fool.com
