Hungry for More Shale Oil Stock? Pioneer Natural Bets Yes
- Texas-based shale explorer sees 14% increase in 2016 budget
- Stock plunges 8.2 percent after new shares priced at discount
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Even after almost $400 billion in oil company market value was wiped out by investors fleeing the crude rout, Pioneer Natural Resources Co. is betting there’s ample demand for more shale-drilling shares.
Pioneer plans to sell 12 million new shares to help finance a 14 percent budget increase and a sixth straight year of higher production. The public offering, expanded from the originally envisaged 10.5 million plus up to 1.8 million more shares for underwriters, would expand the pool of available shares for the Dallas-based shale driller by about 9 percent.