Whiting Petroleum shares sink as it sells shares to pay debt

Associated Press

Shares of Whiting Petroleum fell sharply Tuesday, a day after saying it would sell as many as 40 million shares.

NEW YORK (AP) — Shares of Whiting Petroleum fell sharply Tuesday, a day after saying it would sell as many as 40 million shares and $1.75 billion in senior notes to pay down debt related to its $6 billion acquisition of Kodiak Oil & Gas.

The oil and gas company said late Monday that it will offer 35 million of its shares and said underwriters had a 30-day option to purchase an additional 5.25 million in shares. The stock offering could bring Whiting more than $1.5 billion, based on its stock's closing price of $38.39 on Monday.

In addition, Whiting said it will sell $1.75 billion in senior notes. About $1 billion are due in 2020 and $750 million are due in 2023.

Whiting, based in Denver, completed its acquisition of Kodiak in December.

Shares of Whiting Petroleum Corp. dropped $7.41, or 19.3 percent, to $30.98 in afternoon trading Tuesday. Its shares are down about 54 percent in the last 12 months.

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