Forest Oil Ticks 3% Higher on New Exec Appointment, Revised Guidance, Private Offering

By Staff,

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Forest Oil Corp. ( FST ) is up 2.8% at $8.40, off a day's high of $8.49, after it announced the appointment of a new chief executive, updated guidance for the second half of 2012, and said it will commence a public offering of up to $300 mln.

FST's board has named Patrick R. McDonald as president and CEO, effective immediately. McDonald has served as interim CEO since June 21, 2012.

For the second half of 2012, FST said it expects net sales volumes to average approximately 330-340 MMcfe/d (66% natural gas and 34% oil and natural gas liquids), an increase of 3% over previous guidance provided in July. The company also intends to invest between $240 mln and $260 mln for capital expenditures, an increase of $50 mln from previous guidance.

FST also announced its plans to commence a private offering of $300 mln in aggregate principal amount of senior unsecured notes due 2020. The company will use the net proceeds from the offering, together with borrowings under its bank credit facility, to fund a proposed redemption of 50% of the aggregate principal amount of its outstanding 8.5% Senior Notes due 2014. The principal amount outstanding of the 2014 Notes is $600 million.

FST trades in a 52-week range of $5.68 - $19.75. Shares have fallen 55% in the last 12 months.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: FST

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