Rice Energy Declares $750M Senior Note Offering - Analyst Blog


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On April 11, 2014, upstream operator Rice Energy Inc. ( RICE ) 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 capital spending.

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 ( RRC ), Abraxas Petroleum Corp. ( AXAS ) and Encana Corporation ( ECA ). 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 Report

ENCANA CORP (ECA): Free Stock Analysis Report

RICE ENERGY INC (RICE): Free Stock Analysis Report

RANGE RESOURCES (RRC): Free Stock Analysis Report

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

This article appears in: Investing , Business , Stocks
Referenced Stocks: AXAS , ECA , RICE , RRC

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