Shares of the independent oil and natural gas company Parsley Energy (PE) slumped on Wednesday after it announced an "upsized" or secondary offering of its shares. The original share offering was 20 million, but the company upped it to 22 million shares for total gross proceeds of $770 million.
This comes as Parsley Energy says it will purchase oil and gas properties and undeveloped land next to its Midland and Southern Delaware Basins for $607 million in cash. TheStreet's Tom Terrarosa has exclusively uncovered one of the major sellers. Terrarosa says the company is helping to pay for the acquisitions with this secondary offering and that the share dilution probably doesn't make investors happy.