Equity financing of energy projects replacing bank debt and junk bonds
In 38 separate deals this year, drillers like Houston-based Southwestern Energy and Irving, Texas-based Pioneer Natural Resources have raised a combined $16.2 billion, just above last year’s haul of $15.5 billion, according to Bloomberg.There is a gallery that shows the top 10 equity funding deals. These deals will keep a lot of accountants and lawyers busy filing quarterly and annual reports with the SEC. Market timing seems to be favoring this kind of arrangement at this time.
Equity markets have become one of the most active sources of financing for U.S. oil companies as banks and junk-bond investors retreat from the sector. Wall Street’s bet is paying off. The companies’ stock prices have risen by an average of 31 percent.