After 2015’s big E&P throttle-down, Cimarex Energy Co. (XEC) appears ready to get back in the driver’s seat.

Cimarex said May 19 that it plans to sell nearly 7 million shares, about 8% of its outstanding stock, for general corporate purposes and to fund increased drilling and completion activity in the second half of 2015 and in 2016.

The sale could generate roughly $750 million, analysts said.

Cimarex, based in Denver, appears to be on the path of other well-capitalized E&Ps positioned in the Permian and Midcontinent that are preparing to accelerate activity, Baird Equity Research said in a May 20 note. Cimarex operations include the Delaware Basin and the Cana-Woodford and Meramec in the Midcontinent.

Cimarex’s offering is a departure from the majority of 2015 capital raises, Tudor, Pickering, Holt & Co. said in a report.

“Color us surprised. Interested to see how the market treats capital being raised for D&C as most deals this year have been geared toward balance sheet protection, which is not an issue for XEC,” Tudor’s report said.

Cimarex has dropped to about six rigs from 20 so far in 2015 but could ramp up going into 2016, driven by lower service costs and confidence in returns.

Cimarex management has said its Capex budget would fluctuate based on the level of service cost reductions in the market. In a May investor presentation, the company said its service costs have declined by 15% since the fourth quarter of 2014.

Robert Du Boff, analyst, Oppenheimer, estimates Cimarex will up its spending by $600 million in 2016. While the stock sale will dilute EPS, the company will also have enough cash on its balance sheet to increase drilling or acquire acreage.

“That said, valuation remains a concern for us, especially in light of such a substantial equity offering,” Du Boff said.

Even with an expected outspend of $700 million in 2015-16, Oppenheimer estimates Cimarex will enter 2017 with about $275 million in cash.

“We expect that like several peers, XEC sees the second half of 2015 as a good time to pick up activity and drive a higher growth trajectory heading into 2016,” Du Boff said.

Of the 63 E&Ps Global Hunter Securities covers, 49% of companies are committed to higher activity levels later in the year or contemplating it. The remaining 51% will focus on strengthening their balance sheets.

Operators in the Midcontinent and the Delaware Basin are among the most improved and both areas appear to be heating up, said Mike Kelly, senior analyst, GHS.

In a May 19 GHS report, Cimarex was named the favorite operator in both plays. The company has the advantage of contiguous Permian acreage that allows for long laterals that generate 68% IRRs, Kelly said.

Kelly said Cimarex may have even better results in the Midcontinent’s Meramec, where it has 115,000 prospective acres. Seven of its wells averaged 30-day rates of 10 million cubic feet equivalent per day.

J.P. Morgan and Barclays are acting as joint book-running managers for the stock offering.