On the same day Devon Energy released its financial earnings reports and started layoffs of 1,000 workers, the company also made an upsized public offering of 69,000,000 shares of its common stock at a price to the public of $18.75 a share. At the end of trading that day, the stock closed at $20.33. A day later on Thursday, early trading saw the stock down to $19.21 a share.
Net proceeds from the offering are expected to be used for general corporate purposes, including boosting Devon’s liquidity position, reducing debt and funding the firm’s capital program.
The announcement by Devon also said it had granted underwriters an option to purchase up to another 10,350,000 shares of common stock at the underwriters’ election.
The offering deadline will be Feb. 22 and subject to customary closing conditions.