Amerada Hess Completes Triton Energy Purchase
Amerada Hess Corp., a major East Coast gasoline retailer, completed its acquisition of Triton Energy Ltd. by acquiring all of the validly tendered shares of the Dallas, TX-based independent producer. Amerada acquired Triton's stock at $45/share, bringing the total value of the transaction to $3.2 billion. The deal includes the assumption of $500 million of Triton debt.
With the acquisition, New York-based Amerada Hess projects that its third-quarter production will rise to about 445,000 barrels of oil equivalent (boe) from its original forecast of 418,000 boe, and that fourth-quarter production will increase to approximately 520,000 boe from a previously estimated level of 468,000 boe. Production projections for 2002 have been upped to 535,000 boe and to 600,000 boe in 2003.
Triton Energy's key production properties are located in Columbia and off the coast of Equatorial Guinea in West Africa. It also hold reserves in Thailand, southern Europe and the Middle East.
Amerada Hess said most of Triton Energy's exploration staff and certain senior executives will be kept on following the merger, and that Triton Energy's operations will continue to be headquartered in Dallas.
Amerada reported it has sold 85% of Triton Energy's fourth-quarter 2001 production forward based on a WTI price of $26.65 per barrel, and also has sold forward 60% of Triton Energy's estimated 2002 production based on a WTI price of $25.05
In addition to its refining operations, Amerada Hess is a major producer, transporter and marketer of crude oil and natural gas. The company explores for and produces oil and natural gas in the United States and in a number of major overseas markets.
©Copyright 2001 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.