Newfield Exploration Company NFX reported the closing of its earlier-announced public offering of 25,300,000 shares of its common stock. This comprises 3,300,000 shares sold to the underwriters pursuant to their option to acquire additional shares, which the underwriters exercised in full on Feb 27, 2015.
Post-issuance, Newfield has about 162,687,200 shares of common stock issued and outstanding. After underwriting discounts and projected offering expenses, total net proceeds of the offering will be about $815 million. The amount will be utilized to repay amounts outstanding under Newfield's credit facility and money market lines of credit and for general corporate purposes.
Credit Suisse Securities (USA) LLC acted as sole book-running manager for the offering. The offering was co-managed by J.P. Morgan Securities LLC, Goldman, Sachs & Co., Tudor, Pickering, Holt & Co. Securities, Inc., and Wells Fargo Securities, LLC.
Newfield is an independent energy company engaged in the exploration and production (E&P) of crude oil and natural gas. In an asset-diversification strategy, management has turned what was once an exclusive concentration in the Gulf of Mexico (GoM) into a balanced portfolio.
Although the GoM is still Newfield's largest area of operation, the company has added new focus areas in the onshore Gulf Coast, the Mid-Continent (primarily Oklahoma), and recently, the Rocky Mountain regions. Following the Woodford Shale play, the company entered the emerging Marcellus Shale in Oct 2009. Additionally, after an unsuccessful foray into Australia, the company invested modest amounts in other foreign ventures. Newfield’s international projects are in varying stages in offshore Malaysia and China.
Other well-placed stocks from the oil and gas sector include Valero Energy Partners L.P. VLP, Sunoco LP SUN and Hallador Energy Company HNRG.
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