Midland, Texas based Clayton Williams Energy, Inc. has announced he sale of $150 million in shares to funds managed by Ares Management, L.P. The sale involves 5,051,100 shares of common stock in the firm whose operations stretch into Oklahoma.
Proceeds will be used to provide more liquidity for potential debt reduction transactions related to the 2019 Senior Notes and for developmental drilling on the company’s 65,000 net acre position in the core of the southern Delaware Basin in far southwest Texas. The sale figured out to be $29.70 per share
“This equity raise significantly strengthens our balance sheet and provides funds to reduce leverage and possibly accelerate our drilling activities in the Delaware Basin,” explained Mel Riggs, President of Clayton Williams Energy. “We welcome Ares as a significant stockholder and look forward to working together to enhance shareholder value.”
It also marks the second significant investment by Ares in Clayton Williams, “demonstrating our confidence in the Company and the strength of its high quality assets,” according to Nate Walton, Partner at Ares Management.
