Leading upstream energy player Marathon Oil Corporation MRO declared the pricing of the public offering of 145,000,000 shares of its common stock. This number has been raised from 135,000,000 shares of its common stock.
The stock offering, which is anticipated to close on Mar 4, 2016, is dependent on customary closing conditions.
The company has priced the shares at $7.65, each. Marathon will provide underwriters with an option to procure up to 21,750,000 additional shares of its common stock within 30 days from the day of offering. Marathon expects to generate gross proceeds of $1,109.25 million from the offering. However, if the underwriters chose to exercise the option extended to them, the amount will total $1,275.7 million.
The company aims to use the funds raised from the proposed offering to finance its capital programs, strengthen its balance sheet and for various other corporate purposes.
The company has filed a registration statement with the Securities and Exchange Commission and the shares will be offered and sold in accordance to this statement. Also, copies of preliminary prospectus supplement relating to the offering may be collected from Morgan Stanley & Co. LLC – the book-running manager for the offering.
Houston, TX-based Marathon Oil reported narrower-than-expected loss for fourth-quarter 2015 due to higher production from Oklahoma resource plays along with cost-control initiatives. The company is a global exploration and production company with a large and geographically diverse reserve base and solid project pipeline.
Marathon currently carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players in the energy sector are Enviva Partners, LP EVA, Braskem S.A. BAK and Petróleo Brasileiro S.A. – Petrobras PBR.A. All these stocks sport a Zacks Rank #1 (Strong Buy).
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