GPOR selling some FANG
GPOR selling some FANG
MIDLAND, Texas, Nov. 11, 2014 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (FANG) ("Diamondback" or the "Company") announced today the launch of an underwritten public offering of 2,000,000 shares of its common stock by certain selling stockholders, subject to market and other conditions. The underwriter will have an option to purchase up to an additional 300,000 shares of common stock from certain selling stockholders. The shares to be sold in the offering will be sold by certain entities controlled by Wexford Capital LP and by Gulfport Energy Corporation (GPOR) ("Gulfport"). The Wexford entities intend to sell 1,058,000 shares and Gulfport intends to sell 942,000 shares. All of the net proceeds will go to the selling stockholders. The underwriter intends to offer the shares from time to time for sale in one or more transactions on the NASDAQ Global Select Market, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: GPOR selling some FANG
Cut from Raymond James morning report:
Diamondback Energy (FANG, $67.50/sh, Overweight) Launches Secondary Common Stock Offering:
FANG has launched a secondary offering of 2 MM shares (2.3 MM with shoe) which is split between
Wexford Capital (53%) and GPOR (47%). No proceeds will go to FANG.
CS is the sole book-running manager for the offering.
Following the offering and assuming the shoe is placed, Wexford’s holdings will decrease to ~10.5%
from ~12.7% and GPOR’s holdings will decrease to <0.1% from ~2%, previously.
Prior to fees and using today’s stock price of $67.50/sh, GPOR will raise ~$73 MM associated with
the offering and have a remaining balance of ~$3.3 MM in FANG equity.
With the recent almost 30% pull back in WTI prices, today's announcement will certainly raise
eyebrows. More specifically, with the combination of a private equity firm and public gas levered E&P,
taking profits and further reducing their interest in a profitable oil levered investment, highlights an
opportunistic and potentially bearish outlook for crude from both their #1 shareholder and an industry player.
Diamondback Energy (FANG, $67.50/sh, Overweight) Launches Secondary Common Stock Offering:
FANG has launched a secondary offering of 2 MM shares (2.3 MM with shoe) which is split between
Wexford Capital (53%) and GPOR (47%). No proceeds will go to FANG.
CS is the sole book-running manager for the offering.
Following the offering and assuming the shoe is placed, Wexford’s holdings will decrease to ~10.5%
from ~12.7% and GPOR’s holdings will decrease to <0.1% from ~2%, previously.
Prior to fees and using today’s stock price of $67.50/sh, GPOR will raise ~$73 MM associated with
the offering and have a remaining balance of ~$3.3 MM in FANG equity.
With the recent almost 30% pull back in WTI prices, today's announcement will certainly raise
eyebrows. More specifically, with the combination of a private equity firm and public gas levered E&P,
taking profits and further reducing their interest in a profitable oil levered investment, highlights an
opportunistic and potentially bearish outlook for crude from both their #1 shareholder and an industry player.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group