Acquisition

After going on an acquisition binge over the past couple of years, Oklahoma City, OK-based Devon Energy Corp. has switched gears and plans to shed up to $1.5 billion in properties in North America and overseas to reduce its ballooning debt by mid-2002.

After going on an acquisition binge over the past couple of years, Oklahoma City, OK-based Devon Energy Corp. has switched gears and plans to shed up to $1.5 billion in properties in North America and overseas to reduce its ballooning debt by mid-2002.

Stone Energy Corp. has announced that the acquisition of interests in eight producing oil and gas properties and related assets located in the Gulf of Mexico was completed on Dec. 31, 2001. The final aggregate purchase price, as previously announced, was $299.7 million and was financed with net proceeds from Stone’s recently completed offering of $200 million of 8.25% senior subordinated notes due 2011, and borrowings under its bank credit facility.

Stone Energy Corp. announced Wednesday that the acquisition of interests in eight producing oil and gas properties and related assets located in the Gulf of Mexico was completed on Dec. 31, 2001. The final aggregate purchase price, as previously announced, was $299.7 million and was financed with net proceeds from Stone’s recently completed offering of $200 million of 8.25% senior subordinated notes due 2011, and borrowings under its bank credit facility.

Shareholders of Louis Dreyfus Natural Gas approved the company’s acquisition by Dominion. Trading of Louis Dreyfus stock will be suspended at the close of trading today and will subsequently be delisted from the New York Stock Exchange. The transaction will be effective on Thursday. Dominion announced in September that it would acquire Louis Dreyfus for $2.3 billion in cash, stock and assumed debt. The deal grows Dominion’s gas reserves by 60% or 4.6 Bcfe. Its production will grow to more than 450 Bcf a year, a 40% hike.

While some producers may be scaling back exploration and acquisition plans in view of current low prices, Stone Energy, which operates in the shallow Gulf of Mexico, is seizing the opportunity to add to its portfolio of prospects.

While some producers may be scaling back exploration and acquisition plans in view of current low prices, Stone Energy, which operates in the shallow Gulf of Mexico, sees the low prices as a chance to capitalize on its shallow prospects and low-cost operations.

Platts, the energy information arm of the McGraw-Hill Companies, has announced the acquisition of Financial Times (FT) Energy, parent of several energy publications and online data services including Gas Daily and Megawatt Daily, from London-based conglomerate Pearson plc.

Hanover Compressor completed its previously announced acquisition from Schlumberger Ltd. of the Production Operators Corp. natural gas compression business as well as ownership interests in certain joint venture projects in South America and related assets for $761 million. Schlumberger received $270 million in cash, $150 million in long-term subordinated notes and 8.7 million shares of newly issued restricted Hanover common stock having a nominal value of $283 million. It also is entitled to receive a distribution of up to $58 million upon the occurrence of certain events relating to one of the joint ventures acquired by Hanover in the transaction. Hanover management reconfirmed its belief that the transaction will add annual revenue and EBITDA of at least $200 million and $90 million, respectively, within one year. As a part of a five-year alliance, Schlumberger has agreed to hold its ownership stake in Hanover for at least three years. In addition, Hanover has agreed to add a senior executive of Schlumberger to its board of directors. The initial designee is Rene Huck, president of reservoir evaluation and development for Schlumberger Oilfield Services. The transaction considerably enhances Hanover’s position in the global compression services and gas handling industry, significantly extends its reach and anticipated growth in large, newly opened markets overseas, and adds 900,000 hp to its compression fleet and an additional 800,000 hp through the South American joint ventures. “We believe this accretive multi-faceted transaction will generate strong revenue growth for Hanover over the next five years,” said Hanover CEO Michael J. McGhan.