Magnolia Oil & Gas drops on $1.1 bln stock sale for WildFire Energy acquisition
MGY•Deal financing and analyst view
J.P. Morgan and Goldman Sachs are joint bookrunners for the stock offering, among others.
According to LSEG data, 11 of 19 analysts rate MGY stock "strong buy" or "buy", while 8 rate it "hold"; the median price target is $32.50.
Shares fall after follow-on priced
Shares of Magnolia Oil & Gas MGY.N were down 6.1% at $23.97 premarket on Tuesday after a $1.1 billion M&A-related follow-on offering was priced.
Houston, Texas-based E&P firm sold about 46.3 million shares at $23.75 to help fund the purchase of WildFire Energy.
The offering size was increased from $1 billion and priced at a 7% discount to the stock's last sale on Monday.
