Extraction expects net proceeds of roughly $594.1 million from IPO
Extraction Oil & Gas, Inc. (ticker: XOG) announced yesterday the pricing of its initial public offering of 33,333,333 shares of its common stock at $19.00 per share. Extraction was initially offering the shares at an estimated price range of $15.00 to $18.00.
The company’s shares began trading on the NASDAQ Wednesday, opening at $22.75. During the trading day, the shares ranged from $21.83 to $23 and more than 19 million shares traded during the company’s first day as a public company.
Extraction has also granted the underwriters a 30-day option to purchase up to an additional 5,000,000 shares of its common stock. The offering is expected to close on October 17, 2016, subject to customary closing conditions, the company said in its press release.
XOG expects net proceeds to total roughly $594.1 million, and intends to use $90.0 million to redeem in full certain of its convertible preferred securities, and $291.6 million to repay borrowings under its revolving credit facility. Extraction said it will use the remaining net proceeds of $212.5 million for general corporate purposes, including to fund its 2016 and 2017 capital expenditures.
The company reported approximately 37.3 MBOEPD of net production from 259 gross operated wells in its S-1 Registration Statement. The company holds about 224,000 net acres on which it is targeting the Niobrara and the Codell formations in the DJ basin in northern Colorado. Extraction reported 187.3 MMBOE of proved reserves in the filing.
