- Oasis Petroleum (NASDAQ:OAS -1.3%) shares have moderated their losses following the 32M-share public offering, upsized from the original announcement of 25M shares, that raised $409M in gross proceeds.
- Topeka Capital lowers its stock price target for OAS to $19 from $22, believing that with the equity overhang lifted, shares should begin to garner increased interest, particularity as oil prices improve, since the company has high leverage to oil (Briefing.com).
- Topeka says the offering was a prudent move that improves OAS's balance sheet to 2.8x net debt/EBITDA by year-end 2015 from 3.4x previously; while OAS still has above-average debt leverage in the sector, it is now better positioned to weather the down cycle in oil prices.