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Junk-Rated Debt Is Utilized By Shale Drillers

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Bloomberg
May 1, 2014

Rice Energy Inc. (NYSE: RICE), a natural gas producer with risky credit, raised $900 million in three days this month, $150 million more than it originally sought.

Not bad for the Canonsburg, Pa.-based company’s first bond issue after going public in January. Especially since it has lost money three years in a row, has drilled fewer than 50 wells -- most named after superheroes and monster trucks -- and said it will spend $4.09 for every dollar it earns in 2014.

The U.S. drive for energy independence is backed by ...


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