Independent energy firm,
PetroQuest Energy Inc.
), announced the pricing of senior notes of $200.0 million due to
mature in 2017. The company also declared that the notes will
carry a yearly interest of 10.0%.
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The notes are expected to be issued at 100% of their face value
plus accrued interest since Mar 1, 2013. PetroQuest Energy added
that the net proceeds from this offering will be used to finance
the company's planned acquisitions of some oil and gas producing
properties, which are based in the Gulf of Mexico's shallow water
area. The assets will be purchased from Hall-Houston Exploration
II LP, Hall-Houston Exploration III LP, Hall-Houston Exploration
IV LP and GOM-H Exploration LLC, for a total cash consideration
of roughly $193.0 million. The remaining net proceeds, if any,
will be used by the company for common corporate purposes.
The sale of the notes is expected to be closed by Jul 3, 2013,
but is subject to customary closing conditions.
PetroQuest Energy's first-quarter 2013 earnings per share came in
at 4 cents, surpassing the Zacks Consensus Estimate of 2 cents by
100.0%. The better-than-expected result was mainly due to the
improvement of total daily production along with significantly
lower depreciation, depletion and amortization expenses.
Lafayette, La.-based PetroQuest Energy engages in acquiring,
producing, exploring and developing natural gas and oil reserves,
which are located in the Arkoma Basin, East Texas, South
Louisiana and the Gulf of Mexico's shallow water area.
PetroQuest Energy currently retains a Zacks Rank #1 (Strong Buy),
implying that it is expected to significantly outperform the
broader U.S. equity market over the next one to three months.
Other operators in the exploration and production sector with a
favorable Zacks Rank are
Oasis Petroleum Inc.
Sanchez Energy Corporation
Sandridge Mississippian Trust II
). All these companies presently carry a Zacks Rank #1 (Strong