Devon Energy's Stock Drops After Public Share Offering Announced

Shares of Devon Energy Corp. dropped 5.9% in after-hours trade Wednesday, after the oil and natural gas producer announced plans to sell 55,000,000 million new common shares to the public. If the underwriters exercise their option to buy up to an additional 8.25 million shares, that number of shares outstanding would be increased by about 15%. Devon said it plans to use the proceeds from the offering for general corporate purposes, including reducing debt, boosting its liquidity position and funding its capital program. The stock had tumbled 70% over the past three months through Wednesday's close, while the S&P 500 had slipped 8.3%.