On April 11, 2014, upstream operator
Rice Energy Inc.
) announced a senior note offering worth $750.0 million. However,
the offering is dependent on some market conditions. The company
added that the notes are likely to be offered to selected
investors and will probably mature by 2022.
Rice Energy stated that part of the net proceeds will be
utilized for clearing the second lien term loan. Another portion
of the proceeds will be used for normal corporate activities like
Last month, Rice Energy reported fourth-quarter 2013 earnings
of 7 cents per unit, which surpassed the Zacks Consensus Estimate
of 5 cents. Significant increase in total production aided the
result, which was however partially offset by higher operating
expenses. The company also revealed that it will likely invest
roughly $1,230.0 million in 2014, reflecting an increase of about
96.0% from the amount invested in 2013. Out of the total, $430.0
million and $150.0 million will be allocated toward drilling and
completion activities in the Marcellus and Utica Shales.
Rice Energy primarily involves in the exploration, production,
development and acquisition of gas and oil resources. Rice Energy
currently retains a Zacks Rank #3 (Hold), implying that it is
expected to perform in line with the broader U.S. equity market
over the next 1 to 3 months.
Meanwhile, one can consider better-ranked players in the oil
and gas exploration and production sector like
Range Resources Corporation
Abraxas Petroleum Corp.
). Range Resources sports a Zacks Rank #1 (Strong Buy), while
Abraxas Petroleum and Encana carry a Zacks Rank #2 (Buy).
ABRAXAS PETE/NV (AXAS): Free Stock Analysis
ENCANA CORP (ECA): Free Stock Analysis Report
RICE ENERGY INC (RICE): Free Stock Analysis
RANGE RESOURCES (RRC): Free Stock Analysis
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