Denbury Resources (DNR) To Acquire Encore Acquisition Co (EAC) In $4.5 Billion Deal

November 1, 2009 9:43 PM EST

On Sunday, Denbury Resources Inc. (NYSE: DNR) announced plans to acquire Encore Acquisition Company (NYSE: EAC) in a transaction valued at approximately $4.5 billion, including the assumption of debt and the value of the minority interest in Encore Energy Partners LP (NYSE: ENP).

Encore stockholders will receive $50.00 per share for each share of Encore common stock, comprised of $15.00 in cash and $35.00 in Denbury common stock subject to both an election feature and a collar mechanism on the stock portion of the consideration.

Shares of Encore Acquisition Company closed at $37.07 on Friday.

The transaction positions the Company as one of the largest crude oil-focused, independent North American exploration and production companies. The acquisition will also create one of the largest CO2 enhanced oil recovery platforms diversified across the Gulf Coast and Rocky Mountain regions, complemented by ownership and control of the Jackson Dome CO2 source in Mississippi and CO2 sequestration contracts secured with anthropogenic sources in the Gulf Coast, Midwest and Rockies.

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