XTO Energy Inc. said Tuesday it plans to offer 26 million shares of stock in hopes of raising up to $1.7 billion to finance property acquisitions and repay debt.
The Fort Worth, Texas-based natural gas producer said it expects the shares to be offered for about $57.98 apiece, which was Monday's closing price. The net proceeds would be about $1.5 billion at that per-share price, which would increase to $1.7 billion if the underwriters fully exercise options to purchase 3.9 million additional shares, the company said.
Proceeds will be used to finance pending property acquisitions and pay down outstanding commercial paper borrowings, which totaled $2.3 billion on Monday, the company said in a Securities and Exchange Commission filing.
If the proposed acquisitions do not close, XTO will use the net proceeds to pay down debt and for general corporate purposes.
The offering will be made under a shelf registration statement and managed by Lehman Brothers, JPMorgan and UBS Investment Bank.
Its stock fell $4.87, or 8.4 percent, to close Tuesday at $53.11.
XTO has properties in Texas, New Mexico, Arkansas, Oklahoma, Kansas, Wyoming, Colorado, Alaska, Utah, Louisiana, Mississippi, Montana, North Dakota, Pennsylvania and West Virginia.
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