Oasis Petroleum Inc. (NYSE: OAS) launched a new stock offering to partly fund its 2016 capex of $385- to $435 million, even though its budget is about 30% lower than last year.
The North Dakota oil producer said on Jan. 28 it would offer 34 million shares, with a 30-day option for underwriters to purchase an additional 5.1 million shares.
Based on its close on Jan. 27 of $5.32, Oasis can raise as much as $208 million from the offering, including the underwriters' option.
Oasis Petroleum shares fell as much as 15% in premarket trading to $4.51. The stock has more than halved in the past year.
The company said it expects to produce 46,000-50,000 barrels of oil equivalent per day (boe/d) in 2016, compared with 50,477 boe/d last year.
About 60% of Oasis's oil output has been hedged at an average price of $53.36, the company said in a statement.
U.S. crude was trading at about $32 on Jan. 28.
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