Plains Exploration (PXP) to Acquire Shell's (RDS-A) Holstein Field Interest in $560M Deal
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Price: $48.97 -0.1%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 6.1%
Revenue Growth %: +134.6%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 6.1%
Revenue Growth %: +134.6%
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Plains Exploration & Production Company (NYSE: PXP) has entered into a definitive agreement to acquire from Shell Offshore Inc. (NYSE: RDS-A) its 50% working interest in the Holstein Field for $560 million.
At the end of July 2012, these properties were producing an estimated 7,400 barrels of oil equivalent net per day of which nearly 86% is oil and natural gas liquids with an average American Petroleum Institute gravity of 33 degrees. Upside production potential exists in the currently producing reservoirs through numerous low risk, high-margin drilling/recompletion and well workover opportunities. The transaction is subject to preferential rights, title and environmental due diligence and other customary closing conditions. This transaction is effective October 1, 2012 and is expected to close by year-end 2012.
Initial acquisition financing is being fully underwritten by a consortium of banks led by J.P. Morgan Securities LLC. The bank group consists of J.P. Morgan Chase Bank, N.A., Bank of America, N.A., BMO Capital Markets, Barclays Bank PLC, Citigroup Global Markets Inc., Royal Bank of Canada, The Bank of Nova Scotia, TD Securities, and Wells Fargo Bank, N.A. J.P. Morgan Securities LLC and Barclays Capital Inc. advised PXP on this transaction.
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At the end of July 2012, these properties were producing an estimated 7,400 barrels of oil equivalent net per day of which nearly 86% is oil and natural gas liquids with an average American Petroleum Institute gravity of 33 degrees. Upside production potential exists in the currently producing reservoirs through numerous low risk, high-margin drilling/recompletion and well workover opportunities. The transaction is subject to preferential rights, title and environmental due diligence and other customary closing conditions. This transaction is effective October 1, 2012 and is expected to close by year-end 2012.
Initial acquisition financing is being fully underwritten by a consortium of banks led by J.P. Morgan Securities LLC. The bank group consists of J.P. Morgan Chase Bank, N.A., Bank of America, N.A., BMO Capital Markets, Barclays Bank PLC, Citigroup Global Markets Inc., Royal Bank of Canada, The Bank of Nova Scotia, TD Securities, and Wells Fargo Bank, N.A. J.P. Morgan Securities LLC and Barclays Capital Inc. advised PXP on this transaction.
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