Baytex Energy responds to call for capital

摘要

Investor grief on oil and gas investments has morphed into anticipation. baytex energy, the Canadian explorer with a significant presence in the Eagle Ford Shale, is the latest North American E&P to acquiesce to high-cost equity to relieve its capital structure. The company, which has already twice reduced planned capital expenditure for the year in the face of low commodity prices, secured C$550m (US$433m) on an overnight stock sale on Wednesday. Scotia Capital and RBC Capital Markets had little trouble attracting investors, in part because many anticipated the funding and are willing to take a long-term view on oil prices. The high level of demand allowed the banks to boost the size of their commitment from 28.8m to 31.7m offered at the C$17.35 fixed-price marketing, versus a C$18.23 last sale on Wednesday.