Oklahoma

Devon to Acquire Mitchell Energy for $3.1 Billion

Devon Energy Corp. of Oklahoma City, OK, announced last Tuesday that it will acquire Mitchell Energy & Development Corp. for $3.1 billion in cash and stock, making it the second largest independent natural gas producer in the United States after Anadarko Petroleum Corp.

August 20, 2001

Industry Briefs

Kerr-McGee has received antitrust approval for its $1.3 billion acquisition of natural gas producer HS Resources Inc., based in San Francisco. The Oklahoma City independent said it had been granted early termination of the waiting period under the Hart-Scott-Rodino Act, and when completed, Kerr-McGee would join the top five list of leading oil and gas independents, and would up its gas reserves 77%. Kerr-McGee announced in mid-May that it would acquire gas-rich HS Resources for $66 per share (see NGI, May 21). The deal will consist of a 70% cash payment and 30% of Kerr-McGee Stock. Kerr-McGee also will assume about $450 million of HS Resources’ debt. With its core program in the Rockies, HS Resources holds about 1.3 Tcfe in reserves in the Denver-Julesburg Basin of northeast Colorado. With the acquisition, Kerr-McGee said it expected to increase its daily production of U.S. natural gas by more than 45%.

June 11, 2001

Kerr-McGee, HS Resources Deal Closer

Kerr-McGee has received antitrust approval for its $1.3 billion acquisition of natural gas producer HS Resources Inc., based in San Francisco. The Oklahoma City independent said it had been granted early termination of the waiting period under the Hart-Scott-Rodino Act, and when completed, Kerr-McGee would join the top five list of leading oil and gas independents, and would up its gas reserves 77%.

June 8, 2001

Louis Dreyfus Hedges Production Through Oct.

Using a combination of fixed-price swaps and costless collars,Oklahoma City-based Louis Dreyfus Natural Gas Corp. has put priceprotections on 200,000 MMBtu/d of natural gas production from Marchthrough October 2001.

January 3, 2001

Industry Briefs

The United States District Court for the Western District ofOklahoma dismissed the securities litigation filed in late 1997against Chesapeake Energy and its officers and directors and ruledin their favor. The litigation, which originally consisted of 12lawsuits but which was consolidated into one class action suit in1998, charged that Chesapeake had misstated or omitted factsconcerning its activities in the Louisiana Austin Chalk Trend fromJan. 25, 1996 through June 25, 1997. The shareholder suits allegedthat they had been mislead by Chesapeake into thinking that thecompany expected to operate successfully in the entire Austin Chalkarea, including the area outside Masters Creek, resulting in aninflated share price. Shareholders said rather than disclosingunsuccessful drilling results in the outer Masters Creek area,company insiders disposed of nearly 200,000 company shares with amarket value of about $2.2 million. In June 1997, Chesapeakeannounced it expected to take a full-cost write-down of itsinvestment in areas of Louisiana outside of Masters Creek totaling$150 million to $200 million. Following that, Chesapeake’s stockprice plummeted. In dismissing the plaintiffs’ amended complaint onMarch 3, the Court found that throughout the alleged class period,Chesapeake had disclosed to its investors the “precise risks”associated with its investments and activities in the LouisianaTrend. The court also determined that the plaintiffs had providedno factual support for their allegations of misstatements oromissions by Chesapeake.

March 13, 2000

Class Action Suit Against Chesapeake Dismissed

The United States District Court for the Western District ofOklahoma has dismissed the securities litigation filed in late 1997against Chesapeake Energy and its officers and directors and ruledin their favor, the company said yesterday. The litigation, whichoriginally consisted of 12 lawsuits but which was consolidated intoone class action suit in 1998, charged that Chesapeake hadmisstated or omitted facts concerning its activities in theLouisiana Austin Chalk Trend from Jan. 25, 1996 through June 25,1997.

March 7, 2000

ONEOK Buying Kinder Assets, Marketing

As part of a continued streamlining, Kinder Morgan Inc. unloadedall of its Oklahoma, Kansas and West Texas gathering and processingbusinesses last week to ONEOK Inc. In addition, ONEOK agreed to buyKinder’s marketing and trading business as well as certain storageand transmission pipelines in the Midcontinent.

February 14, 2000

ONEOK Buying Kinder Midcontinent Assets

Kinder Morgan Inc. and ONEOK Inc. agreed for ONEOK to buy all ofKinder’s gas gathering and processing businesses in Oklahoma,Kansas and West Texas, the companies announced Tuesday. Inaddition, ONEOK agreed to buy Kinder’s marketing and tradingbusiness as well as certain storage and transmission pipelines inthe Midcontinent.

February 9, 2000

Kerr-McGee Plans for 2000, Takes Stock of 1999

At an analyst meeting yesterday, executives from theOklahoma-City based Kerr-McGee, a major independent oil and gasproducer, outlined the company’s performance in 1999 and allowed afew glimpses into its strategy for next year.

December 9, 1999

Chesapeake Energy Turns A Profit This 3Q

Chesapeake Energy Corp. of Oklahoma City generated third-quarternet income of $18.1 million and cash flow from operations of $43.4million on 32.7 Bcfe of production. Average commodity pricesrealized during the quarter were $18.90/barrel of oil and $2.26/Mcfof gas for a gas equivalent price of $2.40/Mcfe.

November 1, 1999