Oil and natural gas producer Pioneer Natural Resources Co. said Tuesday it expects to raise about $129 million in gross proceeds from a public offering.
The company said it priced units in its publicly traded partnership, called Pioneer Southwest Energy Partners L.P., at $29.20 per unit. The partnership will sell about 2.6 million units and raise about $76 million from the public offering.
The parent company Pioneer Natural Resources will sell an additional 1.8 million units in the partnership and generated about $53 million in gross proceeds. Pioneer will keep proceeds from that offering to be used by the corporate parent company.
The offering is slated to close Dec. 16.
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Pioneer Southwest Energy Partners owns and buys oil and natural gas drilling properties. The partnership will use money from its public offering to accelerate its 2012 drilling program and add a third drilling rig to its operation.
Gross proceeds from the offerings don't include costs for discounts and commissions. Citigroup, Wells Fargo Securities, BofA Merrill Lynch and Deutsche Bank Securities are joint book-running managers for the offering.
Pioneer granted the underwriters a 30-day option to buy up to an additional 660,000 common units.
Shares of Pioneer Natural Resources dropped $1.18, or 1 percent, to close at $87.03. Shares of Pioneer Southwest Energy Partners fell $2.21, or 7 percent, to close at $28.25.