PDC Energy Inc. (PDCE), an independent energy firm, reported the closure of its previously declared public offering of 5.175 million common shares. After eliminating compensation of the underwriter, the company received net proceeds of roughly $276.0 million.
The proceeds will be utilized by PDC Energy in order to finance a part of its extended capital expenditure program for the remaining period of 2013 and for 2014. Moreover, the company also plans to use the realizations to add a fourth rig for drilling activities in the Wattenberg Field, for corporate issues and to buy an extra acreage in the Utica Shale.
Recently, PDC Energy announced second-quarter 2013 adjusted earnings per share of 23 cents, failing to beat the Zacks Consensus Estimate of 26 cents due to significant increase in overall production cost. However, the company improved from adjusted loss per share of 6 cents incurred in the year-ago period. The year over year result was aided by substantial increase in production.
Denver, Colo.-based PDC Energy is primarily involved in the exploration, development and production of liquid and gas. The company operates mainly in the liquid-rich Wattenberg Field. Oil and Gas Exploration and Production and Gas Marketing are the two segments of PDC Energy.
PDC Energy currently carries a Zacks Rank #2 (Buy), implying that it is expected to outperform the broader U.S. equity market over the next one-to-three months.
Apart from PDC Energy, there are other oil and gas exploration and production firms like Cabot Oil & Gas Corporation (COG), Range Resources Corporation (RRC) and VOC Energy Trust (VOC) that are expected to significantly outperform the broader U.S. equity market over the next one-to-three months. All the firms currently sport a Zacks Rank #1 (Strong Buy).
More From Zacks.com