Energen Drops 6% After Company Announces Common Stock Offering

Shares of Energen Corporation (NYSE: EGN) lost more than 6 percent on Wednesday after the company announced that it plans on launching a common stock offering of 12 million shares.

Energen did not declare an issuing price, but did note that it will use the proceeds for the repayment of borrowings under its credit facility, funding of drilling and development activities and/or general corporate purposes.

Energen's credit facility is scheduled to mature on August 30, 2019 and the interest rate applicable to its borrowings is approximately 1.68 percent per annum.

Shares traded recently at $21.80, down 4.8 percent.