Oil field at sunset.Yevgeniy Steshkin/Getty Images/iStockphoto
Add Peyto Exploration & Development Corp. to the rush of Canadian producers tapping equity markets in the face of the energy-sector downturn.
Peyto said on Wednesday is selling $150-million of shares in a bought deal, with proceeds earmarked for debt reduction and to help fund capital spending.
The company, seen as one of the stronger players amid depressed oil and gas prices, is offering 4.4-million shares at $34.25 apiece. Underwriters, led by Bank of Montreal, can buy an additional 15 per cent to cover over-allotments.
The Canadian energy sector has issued more than $4-billion worth of stock this year, with some large companies, such as Cenovus Energy Inc. and Encana Corp., looking to prop up balance sheets and keep paying dividends. Smaller players, include Whitecap Resources Ltd., have used the proceeds to fund acquisitions.
Peyto has said it plans to "be greedy when others are fearful" and take advantage of the industry's weakened state by adding to its inventory of drilling locations.
Jeffrey Jones