ME Mariner Energy Inc.

HOUSTON, June 4 /PRNewswire-FirstCall/ -- Mariner Energy, Inc. (NYSE:ME) today announced that it has priced its underwritten public offerings of common stock and senior notes. Mariner has agreed to sell 10 million shares of common stock at a public offering price of $14.50 per share. The company granted the underwriters a 30-day option to purchase an additional 1.5 million shares of its common stock to cover over-allotments. Mariner estimates that its net proceeds from the sale of common stock, after deducting estimated underwriting discounts and commissions and offering expenses, will be $138.3 million, assuming the underwriters' over-allotment option is not exercised. Mariner also has agreed to sell $300 million in aggregate principal amount of its 11.75% senior notes due 2016 concurrently with the sale of common stock, an increase of $50 million from the amount previously announced. The notes are expected to be sold at 97.093% of principal amount, for a yield to maturity of 12.375%. The notes will pay interest semi-annually in arrears and will mature on June 30, 2016, unless earlier repurchased. Mariner estimates that its net proceeds from the sale of notes, after deducting estimated underwriting discounts and commissions and offering expenses, will be $284.8 million. Mariner expects to use net proceeds from the sales of common stock and senior notes to repay debt under its secured bank credit facility. Closing of the sales is expected on June 10, 2009, subject to customary closing conditions. The offerings are being made pursuant to an effective shelf registration statement filed with the U.S. Securities & Exchange Commission (SEC). For each offering, a prospectus supplement and accompanying prospectus describing the terms of the offering will be filed with the SEC and available on its website at http://www.sec.gov/. Neither of the offerings is contingent upon consummation of the other offering. Credit Suisse Securities (USA) LLC, J.P. Morgan Securities Inc., and Merrill Lynch, Pierce, Fenner & Smith Incorporated are acting as joint book-running managers for the common stock offering. Copies of the prospectus supplement and the accompanying prospectus may be obtained by contacting Credit Suisse Securities (USA) LLC, Prospectus Department, One Madison Avenue, New York, NY 10010 or by calling 800-221-1037; J.P. Morgan Securities Inc., 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245, Attn: Chase Distribution and Support Service, Northeast Statement Processing, or by calling 718-242-8002, or by faxing to 718-242-8003; or Merrill Lynch, Pierce, Fenner & Smith Incorporated, Attn: Prospectus Department, 4 World Financial Center, New York, NY 10080, or by calling 212-449-1000. Credit Suisse Securities (USA) LLC, Bank of America Securities LLC, J.P. Morgan Securities Inc., Wachovia Capital Markets, LLC and Citigroup Global Markets Inc. are acting as joint book-running managers for the senior notes offering. Copies of the prospectus supplement and the accompanying prospectus may be obtained by contacting Credit Suisse Securities (USA) LLC, Prospectus Department, One Madison Avenue, New York, NY 10010 or by calling 800-221-1037; Bank of America Securities LLC, Prospectus Department, 100 West 33rd Street, 3rd Floor, New York, NY 10001; J.P. Morgan Securities Inc., ADP IDS, 1155 Long Island Avenue, Edgewood, NY 11717, Attn: Post-Sale Fulfillment, or by calling 212-834-4533; Wachovia Capital Markets, LLC at 301 South College Street, 6th Floor, Charlotte, NC 28202, Attn: High Yield Syndicate; or Citigroup Global Markets Inc., Attn: Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, or by calling 800-831-9146 or by emailing to . This news release is neither an offer to sell nor a solicitation of an offer to buy any securities of Mariner and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful. About Mariner Energy, Inc. Mariner Energy is an independent oil and gas exploration, development, and production company headquartered in Houston, Texas, with principal operations in the Permian Basin and the Gulf of Mexico. Forward-looking statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, that address activities that Mariner assumes, plans, expects, believes, projects, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. Our forward-looking statements generally are accompanied by words such as "may", "will", "estimate", "project", "predict", "believe", "expect", "anticipate", "potential", "plan", "goal", or other words that convey the uncertainty of future events or outcomes. Forward-looking statements provided in this press release relate to, among other things, the offering of Mariner common stock and senior notes, the expected maturity date of the notes and use of proceeds from both proposed offerings. These forward-looking statements are based on Mariner's current belief based on currently available information as to the outcome and timing of future events and assumptions that Mariner believes are reasonable. Mariner does not undertake to update its guidance, estimates or other forward-looking statements as conditions change or as additional information becomes available. Mariner cautions that its forward-looking statements are subject to all of the risks and uncertainties normally incident to the exploration for and development, production and sale of oil and natural gas. These risks include, but are not limited to, price volatility or inflation, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating future oil and gas production or reserves, and other risks described in the Annual Report on Form 10-K for the fiscal year ended December 31, 2008, as amended, and other documents filed by Mariner with the SEC. Any of these factors could cause Mariner's actual results and plans of Mariner to differ materially from those in the forward-looking statements. Investors are urged to read the Annual Report on Form 10-K for the year ended December 31, 2008, as amended, and other documents filed by Mariner with the SEC. DATASOURCE: Mariner Energy, Inc. CONTACT: Patrick Cassidy of Mariner Energy, Inc., +1-713-954-5558, Web Site: http://www.mariner-energy.com/

Copyright