Energen Prices $405 Mln Stock Offering

(RTTNews) - Energen Corp. (EGN) said Wednesday that it has priced an underwritten public offering of 5.7 million shares of its common stock.

Total gross proceeds of the offering will be about $405 million. The underwriter has a 30-day option to purchase up to 855,000 additional shares of common stock from Energen.

The offering is expected to close on or about June 22.

Energen plans to use the net proceeds from the offering to fund a slight increase in drilling activity in the Midland Basin in the second half of 2015 and, more significantly, to begin a multi-year acceleration of development activities in the Permian Basin in 2016, with capital investment in 2016 of $1.0 billion or more; net proceeds also may be used for other general corporate purposes, including the acquisition of proved and unproved leasehold. Pending such uses, Energen intends to use the net proceeds from this offering to repay borrowings outstanding under its credit facility.