Parsley Energy Inc (NYSE:PE) has disclosed that it would be conducting a public offering of 13 million shares of class A common stock. The company is expecting a return of $188.6 million, which it plans to utilize for the restructuring of its debt and to fund capital for acquisitions and other expenses. Furthermore, Parsley Energy has also been experiencing a series of insider sales. The most recent transaction was made by the VP of Land of Parsley Energy, Mike Hinson. The VP sold 21,666 shares on September 8, for a price of $16.08 per share.
Parsley Energy has been experiencing a downfall in terms of its revenues. The company reported $133.07 million in revenues for the 1H2015. This value was down by 5% from the same period in the preceding year. However, this downfall can also be associated with increased energy production from PE, in the face of declining oil prices. Furthermore, Parsley Energy’s operating costs registered a sharp increase, 19% on per barrel of oil equivalent basis. Subsequently, the company has also been registering a loss of more than $36 million, in both 1H14 and 1H15.
At the moment, company insiders hold a total of 14.3% shares of PE, after the past 6 months registering a decline of 5.71%. The majority of PE shares are held by institutional investors, 82.3%, with the last 6 months registering an increase of 2.44%. The public offering from Parsley Energy has been very discouraging for its investors, as the stock has been registering a decline in its share value, since the announcement. Furthermore, the company shares have recorded a decline of 25.5% since the start of the year, which is significantly higher than the industry average. Even though the company has reported significant improvements in terms of its quarterly EPS, it is still considered a risky bet in the industry.
Parsley Energy Inc (NYSE:PE) completed the September 18 trading session, with a decline of 4.59% in its share value to close at a share price of $15.78.