NEW YORK (TheStreet) -- Shares of Bill Barrett Corp (BBG) were down 5.14% to $8.77 on heavy volume in midday trading Thursday, after the company announced that it may offer and sell shares of its common stock having an aggregate gross sales price of up to $100 million.
The shares will be offered pursuant to an equity distribution agreement between Bill Barrett and Goldman Sachs (GS).
The company will use the proceeds for general corporate purposes, including additional capital spending associated with the accelerated development of its Denver-Julesburg Basin properties.
The company also raised its 2015 production guidance to between 6 million to 6.4 million barrels of oil.
It also expects planned capital spending to be between $320 million to $350 million.
About 2.16 million shares of Bill Barrett have exchanged hands as of 12:01 p.m. ET today, compared to its average trading volume of about 2.07 million shares a day.
Denver, Colo.-based Bill Barrett develops oil and natural gas in the Rocky Mountain region of the U.S.
Separately, TheStreet Ratings team rates BILL BARRETT CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate BILL BARRETT CORP (BBG) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and weak operating cash flow."