PDC Energy (PETD) to Acquire of Five LPs in $29.5M Deal
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PDC Energy (Nasdaq: PETD) reports entering into merger agreements pursuant to which it intends to acquire five limited partnerships for which PDC serves as the Managing General Partner, of which four were formed in 2003 and one was formed in 2002.
The merger of each of the partnerships with and into a subsidiary of PDC is subject to the approval of holders of a majority of the limited partner units held by each partnership's limited partners not affiliated with PDC.
Pursuant to the merger agreements, if the proposed mergers are approved and other customary conditions to closing are satisfied, PDC will acquire all limited partnership units of the above-mentioned partnerships. PDC estimates the total cost to PDC to consummate all five mergers will be approximately $29.5 million. The merger agreements provide for a one time aggregate upward price adjustment on the date one day prior to the filing of the definitive proxy statement in the event oil or natural gas commodity prices increase by certain net minimum amounts over the five-year oil and gas NYMEX prices as of March 31, 2011.
The merger of each of the partnerships with and into a subsidiary of PDC is subject to the approval of holders of a majority of the limited partner units held by each partnership's limited partners not affiliated with PDC.
Pursuant to the merger agreements, if the proposed mergers are approved and other customary conditions to closing are satisfied, PDC will acquire all limited partnership units of the above-mentioned partnerships. PDC estimates the total cost to PDC to consummate all five mergers will be approximately $29.5 million. The merger agreements provide for a one time aggregate upward price adjustment on the date one day prior to the filing of the definitive proxy statement in the event oil or natural gas commodity prices increase by certain net minimum amounts over the five-year oil and gas NYMEX prices as of March 31, 2011.
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