• EKSPLORASI.ID
  • MONETER.ID
  • BANTEN.CO
Rabu, Oktober 8, 2025
  • Login
EKSPLORASI.ID
  • HOME
  • BERITA
  • INDEPTH
  • RAGAM
  • ENGLISH NEWS
  • OPINI
  • VIDEO
  • FOTO
  • INFOGRAFIS
  • INDEKS
No Result
View All Result
  • HOME
  • BERITA
  • INDEPTH
  • RAGAM
  • ENGLISH NEWS
  • OPINI
  • VIDEO
  • FOTO
  • INFOGRAFIS
  • INDEKS
No Result
View All Result
EKSPLORASI.ID
No Result
View All Result
Home ENGLISH NEWS

Oil Patch Buying Time With Stock Sales as Bust Drags on

by Eksplorasi.id
19 Agustus 2016
in ENGLISH NEWS
1
Siap-siap Harga Minyak Melambung lagi, Ini Alasannya

Oil price illustration | Credit : Special.

0
SHARES
33
VIEWS
Share on WhatsappShare on Facebook

U.S. oil and gas producers are selling shares at record speed, a sharp turnaround from past years when debt markets were the industry’s favored source of cash.

There are two main reasons behind the shift, and neither is particularly bullish. First, the downturn made it tougher and more expensive to borrow. Second, using equity can help strengthen a company’s balance sheet at a time when the oil bust is dragging into its third year. The latest is Laredo Petroleum Inc. which said Thursday that it’s selling 13 million shares to repay debt and finance a recent acquisition.

“Last year was about survival,” said Jason Wangler, an analyst at Wunderlich Securities in Houston. “If you survived last year, this year is about preparing for the future.”

Dodging Debt

U.S. energy producers have raised $16 billion from share sales since the start of the year, more than half of the total $29 billion raised by the industry, according to data compiled by Bloomberg. By comparison, equity accounted for 25 percent or less of the capital raised for the past five years.

Turning from debt markets to stock sales can burnish companies’ balance sheets in two ways. The first is simple: repay and refinance debt. The second is by buying up oil and gas prospects to add assets and cash flow, which makes debt look less onerous. U.S. producers are using both.

“The whole name of the game is trying to survive until oil gets back up to $60 or $70,” said Spencer Cutter, a credit analyst with Bloomberg Intelligence. “That may take a year or two. Nobody knows.”

For more on debt investors fearing the energy sector, click here.

Southwestern Energy Co. chose debt reduction. Last week, the company tapped the equity markets for $1.25 billion and used the money to pay off half of a bank loan and postpone the due date on the remaining balance to 2020. The refinancing will give the company almost four years before any major debts come due.

“Through a combination of asset sales, amend and extend agreements with the banks and the equity issuance, Southwestern has successfully strengthened its balance sheet,” said Michael Hancock, a company spokesman.

Another Approach

Other companies have raised equity in order to buy assets. Producers including Pioneer Natural Resources Co., QEP Resources Inc. and Antero Resources Corp. have tapped equity markets this year to finance the purchase of oil and gas prospects. This improves their debt metrics by adding cash flow and assets without borrowing more money.

Spokesmen for Antero, Pioneer and QEP did not return calls for comment.

“It’s all part of the same theme of de-levering,” Subash Chandra, an analyst at Guggenheim Securities LLC in New York, said of the share sales. “Part of that tool-kit is ‘backdoor equity,’ which adds inventory and obscures the dilution by adding something new.”

The stock market doesn’t always seem to mind the dilution. Pioneer, for example, rebounded quickly after its latest offering.

“Investors are looking at this and saying, ‘I know it’s not great now, but I think it’s going to get better in the future so I’m in,’” Wangler said. “It’s a bet on better days ahead.”

Eksplorasi | Bloomberg

Tags: EnergygasOil
Eksplorasi.id

Eksplorasi.id

Next Post
China’s Oil, Coal Output Slides in Sign of More Imports to Come

China’s Oil, Coal Output Slides in Sign of More Imports to Come

Comments 1

  1. Kermit says:
    5 tahun ago

    Hi there mates, its fantastic paragraph concerning tutoringand fully
    explained, keep it up all the time.

    Balas

Tinggalkan Balasan Batalkan balasan

Alamat email Anda tidak akan dipublikasikan. Ruas yang wajib ditandai *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recommended

Harga Minyak Tak Terguncang Serangan Bom di Brussels

Harga Minyak Naik Untuk Pekan Ketiga Berturut-turut

9 tahun ago
Ini Dia Profil Menteri Kelahiran Singapura yang Menjabat sebagai Menteri ESDM

Ignasius Jonan: Bermodal Mantan Menteri, Saya Jadi Menteri ESDM

9 tahun ago

Sering Dibaca

  • Menyigi Kedekatan Massa Manik dan Grup Danatama

    Menyigi Kedekatan Massa Manik dan Grup Danatama

    0 shares
    Share 0 Tweet 0
  • Ironi Kalteng, Kaya Batubara Tapi Listrik Sering Mati

    0 shares
    Share 0 Tweet 0
  • Satu Pal Listrik Mengaliri 60 Rumah

    0 shares
    Share 0 Tweet 0
  • PT Nindya Karya Diduga Lakukan Eksploitasi Tambang Ilegal di NTB

    0 shares
    Share 0 Tweet 0
  • Potensi Uranium Indonesia 77 Ribu Ton, Bisa Penuhi Kebutuhan Listrik 40 Tahun

    0 shares
    Share 0 Tweet 0

RSS Moneter.id

  • Oona Insurance Indonesia Hadirkan Asuransi Penumpang Bagi Pengguna Taksi Listrik Green SM 7 Oktober 2025
  • JTPE Perkuat Penjualan Melalui Ekspor Paspor 7 Oktober 2025
  • Perkuat Portofolio Sektor Infrastruktur Industri & Logistik, Astra Property Selesaikan Akuisisi MMP 7 Oktober 2025
  • UmrahCash dan VIDA Hadirkan Solusi Aman & Praktis 6 Oktober 2025
  • Ini Inovasi Perfect Corp Ubah Cara Konsumen Temukan Sepatu Idaman secara Online 6 Oktober 2025
  • Pasar Apartemen Jakarta Tetap Stabil di Tengah Perlambatan Musiman 6 Oktober 2025
  • Logitech Perkenalkan Keyboard Mekanis Logitech Alto Keys K98M 6 Oktober 2025
  • GIIAS Hadirkan Informasi dan Inovasi Otomotif Terbaru Bagi Pelajar dan Mahasiswa Lewat Education Day 3 Oktober 2025
  • Resmi Dibuka, Deretan Merek dan Kendaraan Terbaru Ramaikan Pameran GIIAS Bandung 2025 3 Oktober 2025
  • Citi Indonesia Dinobatkan sebagai ‘Best Performance Bank’ di Bisnis Indonesia Financial Awards 2025 2 Oktober 2025
EKSPLORASI.ID

© 2020 Eksplorasi.id - REFERENSI BERITA ENERGI

Navigate Site

  • REDAKSI
  • KETENTUAN LAYANAN
  • PEDOMAN SIBER
  • HUBUNGI KAMI

Follow Us

No Result
View All Result
  • HOME
  • BERITA
  • INDEPTH
  • RAGAM
  • ENGLISH NEWS
  • OPINI
  • VIDEO
  • FOTO
  • INFOGRAFIS
  • INDEKS

© 2020 Eksplorasi.id - REFERENSI BERITA ENERGI

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In