Corner ATM for their friends at the big investment banking houses.
Do they really need 7 houses to run 3.2 Million shares (and some over-allotment). And not just any houses either: Wells Fargo Securities, Citigroup, Raymond James, RBC Capital Markets, BofA Merrill Lynch, Credit Suisse and J.P. Morgan will act as joint book-running managers of the underwritten offering.
I've got to believe that Walker and group is lining the pockets of their friends--who are working the land sales and JV deals. Let's see how many shares get into the market versus get accumulated in the trading accounts of these houses--only to be traded at much higher valuations later in the year.
Diluting the present shareholders for certain. I'll be watching to see whether EVEP and/or Enervest insiders benefit from this too.
I've been a long term long but have been getting pretty frustrated with the price action with EVEP over the past few months. Every time the SP looks like its recovering to the 70's something negative comes out to drive it down again..this time, with an unanticipated secondary that management said would not be necessary a few months ago with the Barnett Shale transaction. I'm especially surprised (and very curious/suspicious) that they announced a secondary with no issue price, especially since its quite close to the quarterly announcement...would otherwise make one worry that 4Q was worse than anticipated!
you couldn't be more wrong!! No company is going to do a secondary and then shortly thereafter announce a bad quarter the company/underwriters would be open to a lawsuit. The timing of this offering virtually guarantees that Q4 will look good.