Plains Exploration & Production Co. will become part of mining conglomerate Freeport-McMoRan Copper & Gold Inc. after a majority of shareholders voted to approve the $6.6 billion merger. Freeport, based in Phoenix, in December offered close to $9 billion total to buy Plains, as well as to bring back into the fold McMoRan Exploration Co., which it had spun off in 1994 (see NGI, Dec. 10, 2012). McMoRan shareholders are scheduled to vote June 3 on the merger, comprised of about $2.4 billion cash and a share of future royalties on some assets. The approval came after Freeport and Plains agreed to give Plains shareholders $3.00/share in a one-time special cash dividend and another $1.00 for each Freeport share when the merger is completed. The one-time dividend will cost Freeport an estimated $1 billion. Assuming the merger is completed as scheduled by Friday (May 31), Freeport plans to also complete $1.5 billion in asset sales from the combined company as a way to reduce capital spending. Freeport claims that it would become the fifth-largest U.S.-based natural resource company by enterprise value once the mergers are complete, trailing ExxonMobil Corp., Chevron Corp., ConocoPhillips and Occidental Petroleum Corp.
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Berkshire Hathaway’s charismatic CEO, Warren Buffett, assured state utility regulators last week that his multi-billion-dollar conglomerate is in the energy utility business for the long haul and views the sector as a steady source of income — not an extraordinary one.
Berkshire Hathaway’s charismatic CEO, Warren Buffett, assured state utility regulators this week that his multi-billion-dollar conglomerate is in the energy utility business for the long haul and views the sector as a steady source of income — not an extraordinary one.
Western Resources yesterday threatened to cut its losses andsell the company to a national energy conglomerate because of adecision by the Kansas Corporation Commission (KCC) to reopen thedocket on its merger with Kansas City Power and Light. The KCCissued an order late Monday to reopen the merger docket because ofa stipulation and agreement Western signed with the Missouri PublicService Commission staff and others in the Missouri docket.