Valero Energy Partners' Stock Tumbles After Share Offering

Valero Energy Partners LP's stock tumbled 9.1% in premarket trade Thursday, after the company announced a common share offering late Thursday. Valero said Thursday that it priced its 4.25 million share offering at $46.25 a share, which is 7.1% below Wednesday's closing price of $49.76. The offering would increase shares outstanding by about 7%, according to data provided by FactSet. The stock has climbed 15% year to date through Wednesday, while the S&P 500 has gained 1.2%. Valero Energy Partners is a master limited partnership formed by Valero Energy Corp. to own and develop crude oil and refined product pipelines.