Rice Energy shares slide more than 7% on Vantage Energy deal

Rice Energy
Lucas Jackson | Reuters

Rice Energy shares shed more than 7 percent on Tuesday after announcing it will buy Vantage Energy for about $2.7 billion, including debt.

The company reported it will pay about $1.02 billion in cash and will assume $700 million in debt.

"This acquisition adheres to our proven strategy of pursuing core shale gas acreage, leveraging our industry-leading technical shale team to deliver best-in-class well results and capturing a greater share of the value chain through our premier midstream services business," Rice Energy CEO Daniel Rice said in a statement.

In addition, the independent oil and gas producer reported the pricing of a public offering of 40 million shares of its common stocks at $25.50 per share. Rice Energy will use these net proceeds towards funding Vantage Energy acquisition.

Even with Tuesday's declines, the stock has surged more than 129 percent so far this year.

Rice Energy 5-day performance: