2008-08-30-2007-12-27-2008-02-20

Purchased 35% stake in co. with assets in TX, CO, WY, UT.

Tracinda Corp., Beverly Hills, Calif., the private-investment company owned by Kirk Kerkorian, has closed its acquisition of a 35% stake in Delta Petroleum Corp., Denver, (Nasdaq: DPTR) for $684 million. Delta will use the funds to accelerate development-drilling activities in its core areas, including the Piceance and Paradox basins, and for acquisitions. Tracinda bought 36 million shares of Delta for $19 per share, a 23% premium to the closing price on Dec. 28. Delta's board was increased from 11 to 15 directors, and Tracinda has the right to nominate three additional members later. At closing, Delta's stock price was $21.75. Prior to the announcement, it was $15.51. Delta chairman and chief executive Roger Parker says, "We look forward to having Mr. Kerkorian and his leadership team at Tracinda as a significant shareholder and supporter of Delta. We believe the acceleration of our drilling inventory will provide for many years of shareholder value creation." Tracinda Corp. reports, "Since first announcing our intention to invest, we have grown even more confident in the company's long-term strategy and ability to achieve significant growth from its well-positioned exploration projects. We look forward to lending our support and benefiting from that strategy alongside the company's other shareholders." Morgan Stanley & Co. Inc. and Merrill Lynch & Co. were advisors to Delta. Delta's core areas are in the Rockies and Gulf Coast. Standard & Poor's Rating Services has placed Delta's B- credit rating on CreditWatch with positive implications. S&P views the Kerkorian investment and resulting liquidity as a meaningful benefit to Delta's credit quality as the company will now have a strong liquidity to expand drilling and infrastructure, which should benefit its financial metrics if successful. Coker & Palmer Research analyst Michael Bodino reports Tracinda improves Delta by providing availability of necessary capital and cash on hand for accretive acquisitions, and puts Delta in a better position to manage its exploration portfolio.