Pioneer Natural bets on demand for more shale oil stock with new shares

Chicago

EVEN after almost US$400 billion in oil company market value was wiped out by investors fleeing the crude rout, Pioneer Natural Resources Co is betting there's ample demand for more shale-drilling shares.

Pioneer plans to sell as many as 12.1 million new shares to help finance a 14 per cent budget increase and a sixth straight year of production increases. The public offering of 10.5 million shares, plus up to 1.575 million more for underwriters, would expand the pool of available shares for the Dallas-based shale driller by about 8 per cent.