Equity financing of energy projects replacing bank debt and junk bonds

Fuel Fix:
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.

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.
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.


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