Parsley Energy (PE) said Sept. 17 it is acquiring 1,908 net Permian acres as part of a $39 million acquisition and will go to the public markets to help pay for the deal.

The company will offer nearly 15 million shares to pay for acquisitions, pay down debt and fund its capital program. Some analysts worry that Parsley, if successful in the market, might motivate investors to pump more money into the upstream sector and delay recovery.

Parsley added a net 84 locations in the center of its horizontal drilling program through purchases in Reagan and Upton counties, Texas. Parsley has increased production by 100 barrels of oil equivalent per day (boe/d) since June 30. It said one transaction has not closed.

The company’s trip to the public market may be met unevenly. Investors have been more accepting of financing acquisitions while shying away from propping up poorly capitalized companies.

Tudor, Pickering, Holt & Co. (TPH) said in a brief report that the acquisition offsets the company’s core Upton/Reagan position. The company’s revolver stands at $45 million.

Parsley is offering 13 million common stock shares with an option to purchase up to an additional 1.9 million shares. The company estimated its offering would generate $195 million and another $29 million with the option.

Robert Du Boff, senior analyst, estimated that the company will use $200 million in proceeds to pay down Parsley’s debt and fund future spending shortfalls. In August, the company’s fiscal year 2015 capex increased to by 25% more than $375 million from its previous ceiling of $300 million.

“The share sale signals PE is looking to ramp up drilling activity or add acreage, which would add to its significant EBITDA growth rate (50-60%) in 2016,” Du Boff said.

David Tameron, senior analyst, Wells Fargo Securities, had misgivings about opening the coffers to E&Ps.

“In an industry that needs less rather than more capital, access to capital markets just extends the recovery.”

Tameron said if the transaction is successful many more E&Ps will come to the market seeking capital.

“Katy, bar the door,” Tameron said.

Goldman, Sachs & Co. is acting as a book-running manager for the offering.

Parsley’s last deal, in August, was an unrelated acreage-for-acreage trade in the Permian. In the deal, Parsley divested 12,742 net acres with no identified locations in Gaines and purchased 480 net acres.

In May, the company also completed a $17 million bolt-on that added 3,562 net Midland Basin core acres, adding 114 net horizontal locations.