Penn Virginia is down 22% over the past few days after the company announced a public offering of 12 million common shares and $50 million in depository shares to raise funds in order to reduce its credit revolver's outstanding balance as well as fund general corporate expenses. Reducing the amount owed on a credit revolver is usually a technique used to increase liquidity, especially if the interest rates are high or the revolver is reaching its ceiling.

Penn Virginia however, should be worried about the $300 million debt obligation with over 10% interest looming in 2016 in addition to the 2% revolver. In an attempt to increase liquidity and help shore up its debt-stricken balance sheet, management has temporarily suspended the company's long-standing dividend. 

Another company that faced a similar situation is SandRidge Energy, who plummeted when natural gas prices reached 10-year lows. With the company halfway through its ambitious three-year plan to profitability, the future looks bright. If you are unsure about the future of this emerging oil and gas junior, and are looking to find out if SandRidge is a buy, you should view this brand new premium report detailing SandRidge's game plan and what to expect from the company going forward. To get started -- click here!

The previous version of this article incorrectly stated the company's dividend policy. The Fool regrets the error.