NEW YORK (TheStreet) -- Shares of Eclipse Resources (ECR) - Get Report are plummeting 16.42% to $3.43 on heavy trading volume late Wednesday morning after hiking its outlook for production and capital spending.
The oil and gas exploration and production company now expects to produce between 205 million and 210 million cubic feet equivalent of natural gas per day during 2016 and anticipates that fourth quarter production will average roughly 240 million cubic feet equivalent per day.
Eclipse Resources increased its 2016 capital expenditure budget by $28 million to $196 million.
The company will fund the capital expenditure plan with a public offering of 37.5 million shares priced at $3.50 per share.
About 14.56 million shares of Eclipse Resources have been traded so far today, well above its average trading volume of roughly 899,153 shares per day.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D-.
Eclipse Resources's weaknesses include its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: ECR
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.