Plains Exploration and Production Co., Houston, (NYSE: PXP) plans to acquire Stone Energy Corp., Lafayette, La., (NYSE: SGY) in a stock- for-stock transaction in which Stone shareholders will receive 1.25 shares of Plains stock per Stone share, representing a transaction valued at $1.46 billion, including the assumption of $483 million of debt. The combined company will have an estimated proved reserve base of 500 million barrels of oil equivalent (80% oil) and core areas in California, the Gulf of Mexico, the Rocky Mountains and Texas, with 207,643 net developed acres and 992,822 net undeveloped acres. The reserve-to-production ratio will be 12-14 years and 70-75% of the production will be oil. "The board of directors and I are enthusiastic about combining our high cash flow assets and attractive Rockies development opportunities with PXP's long life assets," says David Welch, Stone chief executive. "The combined company will have strong leverage to oil prices and the ability to grow production profitably. Stockholders of both companies will benefit from the robust portfolio of near term and long term growth opportunities." Randall & Dewey was financial advisor to Stone. Lehman Brothers Inc. was lead financial advisor to Plains, while J.P. Morgan was also financial advisor and rendered a fairness opinion.
Recommended Reading
E&P Highlights: Sept. 16, 2024
2024-09-16 - Here’s a roundup of the latest E&P headlines, with an update on Hurricane Francine and a major contract between Saipem and QatarEnergy.
Goodbye Manual Control: Vital Energy’s Automation Program Boosts Production
2024-07-12 - Production, ESP efficiency soared when the company automated decisions with AI at the edge.
E&P Highlights: July 15, 2024
2024-07-15 - Here’s a roundup of the latest E&P headlines, including Freeport LNG’s restart after Hurricane Beryl and ADNOC’s deployment of AI-powered tech at its offshore fields.
EOG Resources Wildcatting Pearsall in Western Eagle Ford Stepout
2024-07-17 - EOG Resources spud the well June 25 in Burns Ranch with rights to the Pearsall well about 4,000 ft below the Eagle Ford, according to myriad sources.
Permian Basin Coalition Highlights Philanthropic Investments
2024-07-23 - Since 2019, the Permian Strategic Partnership has doubled its membership and used philanthropic investments to generate more than $1.5 billion in community support and collaborative investment.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.