Origin Energy, which recently sold out of its controlling stake in New Zealand-listed Contact Energy, is seeking $A2.5billion ($NZ2.74billion) in cash as it tries to reduce its debt.
Origin agreed to sell its contact stake for $NZ1.8billion.
Origin is one of several international energy companies feeling the pain after plunging oil prices hurt the near-term outlook for multibillion-dollar investments in the gas industry.
The $A2.5billion renounceable four-shares-for-seven offer is fully underwritten, indicating the shares will be taken up.
The $A4-a-share price is a discount on the last traded price of $A6.
Origin was also reducing its capital expenditure by $A2.2billion, as it continued to find ways to get its debt below $A9 billion by 2017.
Origin's balance sheet has been stretched by the funding of the $A24.7billion Australia-Pacific liquefied natural gas project in eastern Queensland, one of four projects in the country seeking to export fuel trapped in coal deposits.
The slump in crude prices this year has exacerbated cost overruns at each of the developments since construction on the first project began in 2009, and threatens returns as gas starts to flow.
The first liquefied natural gas export from the project was expected in coming months.
Production would result in a change in Origin's earnings from 2016 onwards, although the fall in oil prices would affect those earnings.
The project had supply agreements with Sinopec, a Chinese petroleum and chemical corporation, and Kansai Electric, a Japanese energy company, for the bulk of the project's 20-year production forecast.
Origin's 2015 result was weak with an underlying reported profit of $A682million, 3% below expectations.
However, of most concern to the market was the company's commentary suggesting increased risks relating to the Asia-Pacific project.
Origin's required cash contribution to the project had been revised up by $A500,000, while 2016 earnings would be lower than many expected due to increased depreciation from the project as well as increased interest and corporate costs.
Brokers say Origin's increased exposure to energy through the Asia-Pacific project reduces its appeal as a utility stock.
Because of the size of the Asia-Pacific project for Origin, performance will be more tied to the global oil price.
Oil prices were little changed yesterday after a mixed US petroleum market showed an unexpected rise in crude inventories and a dip in crude production.
US benchmark West Texas Intermediate (WTI) for delivery in November fell US14c to $US45.09 ($NZ70.40) a barrel on the New York Mercantile Exchange.
Brent North Sea crude for November delivery, the global benchmark, gained US14c to $US48.37 a barrel in London.
The US Department of Energy reported US commercial crude stockpiles rose by four million barrels to 457.9 million barrels in the week ending September 25.
That was about 28% higher than a year ago, keeping inventories at a level not seen in at least 80 years for this time of year.
