Magnolia Oil & Gas slides after starting $1 bln stock offering for WildFire Energy deal
MGY•Shares fall after equity raise for WildFire acquisition
Shares of Magnolia Oil & Gas MGY.N were down 5.4% to $24.15 in post-market trading after news of an M&A-related equity raise.
MGY kicked off a $1 billion stock offering to fund its purchase of WildFire Energy.
The shale producer said before the bell on Monday that it agreed to buy WildFire for about $4 billion, including debt, to expand its position in the Giddings field in South Texas.
MGY shares finished down 6.3% at $25.53 on Monday, trimming the year-to-date gain to about 17%.
JPMorgan and Goldman Sachs are joint bookrunners for the stock offering, among others.
Houston, Texas-based MGY has about 184.95 million shares outstanding for a $4.7 billion market cap.
