Devon Energy and Santa Fe Snyder completed their $2.5 billionmerger yesterday as shareholders of both companies approved thedeal, which was announced in May. The agreement called for eachSanta Fe Snyder common share to be converted into 0.22 shares ofDevon common stock. Conversion requires issuance of 40.6 millionadditional Devon common shares, resulting in total sharesoutstanding of 127.7 million. Former Santa Fe Snyder shareholdersnow own 32% of the combined company. Historical Devon shareholdersown 68% of the combined company. The transaction will be accountedfor as a pooling of interests. With merger completion, Devon nowranks among the top five U.S.-based independent oil and gasproducers in terms of market capitalization, total proved reservesand annual production. The company has an enterprise value of $9billion and proved reserves of 1.1 billion boe. The company expectsto realize $30 million to $35 million in annual cost savings fromthe merger. Devon was added to the S&P 500 Index after theclose of business yesterday.
Companies
Articles from Companies
EIA Suggests Greater Access for Rocky Mt. Producers
If the U.S. government would allow energy companies to drill onmore federal lands in the Rocky Mountain states, natural gasproduction could increase and prices then would fall, according toa report issued last week by the Energy Information Administration(EIA), the U.S. Department of Energy’s statistical agency.
EIA Suggests Greater Access for Rocky Mt. Producers
If the U.S. government would allow energy companies to drill on more federal lands in the Rocky Mountain states, natural gas production could increase and prices then would fall, according to a report issued last week by the Energy Information Administration (EIA), the U.S. Department of Energy’s statistical agency.
Williams Seeks Breakup of Energy, Communications
In a move analysts predict will help both companies realizetheir full value, Williams has begun the first steps to separateits energy division from its communications businesses. The boardof directors of the Tulsa, OK-based company voted July 23 to beginthe process, which is expected to take about 18 months.
Williams Seeks Breakup of Energy, Communications
In a move analysts predict will help both companies realizetheir full value, Williams has begun the first steps to separateits energy division from its communications businesses. The boardof directors of the Tulsa, OK-based company voted Sunday to beginthe process, which is expected to take about 18 months.
Industry Briefs
Shareholders of Anadarko Petroleum and Union Pacific Resourcesvoted to approve a $5.4 billion merger of the two companiesyesterday. The merger calls for UPR shareholders to receive 0.455shares of Anadarko common stock for each of their UPR shares.Anadarko shareholders also voted to increase the size of the company’sboard to 15 members from nine. The combined company will be namedAnadarko Petroleum (see Daily GPI, April4).
Barrett Resources Takes a Hit on Low-Priced Sales
One of the more promising independent natural gas producingcompanies, Barrett Resources Corp., announced last week itsearnings will suffer over the next few years from forward fixedprice sales in the $2.50/MMBtu range, well below current marketprices above $4/MMBtu, for a significant part of its production.
Barrett Resources Takes a Hit On Low-Priced Sales
One of the more promising independent natural gas producingcompanies, Barrett Resources Corp., announced last week itsearnings will suffer over the next few years from forward fixedprice sales in the $2.50/MMBtu range, well below current marketprices above $4/MMBtu, for a significant portion of its production.
Contango Gets $3 Million Boost from Tribe
One of the tiniest Houston-based development stage companies,Whichonly entered the oil and gas business less than a year ago andwhich hardly had any operating funds at all in its first quarterstatement this year, got a huge boost Friday with a $2.5 millioninvestment from a Colorado Indian tribe. Along with the stockpurchase, the tribe’s fund invested another $480,000 in thecompany’s exploration program, bringing its total investment Fridayto nearly $3 million.
Ranking Shows Energy Execs Earn Big Bucks
Archie W. Dunham, chairman and CEO of Conoco Inc., is thehighest paid executive of all the energy companies eitherheadquartered in Houston, TX, or with a significant local presencethere, according an annual ranking by the Houston Chronicle thatwas released last week.
