Apache Corp. (APA) announced an agreement to acquire Mariner
Energy Inc. (ME) for $2.7 billion, moving the oil-and-gas explorer
into deepwater areas.
The disclosure comes days after Apache agreed to buy the shallow
Gulf of Mexico assets of Devon Energy Corp. (DVN) for $1.05
billion, a deal that reinforces Apache's dominant position in the
Outer Continental Shelf.
Mariner holders would get 0.17043 share of Apache and $7.80 for
each share of Mariner, valuing the stock at $26.22, a level last
seen when oil and gas prices began their plunge in the second half
of 2008. The $26.22 figure is a 45% premium to Wednesday's closing
price as is on top of the near-doubling the stock has seen the past
year. Apache will also assume $1.2 billion of debt.
Apache Chairman and Chief Executive G. Steven Farris called the
purchase "a natural extension into the deepwater" Gulf of Mexico
for the company. He went on to say, "We have considered extending
our Gulf of Mexico operations into the deepwater for a number of
years. This is the right set of assets and the right time for
Apache to expand its deepwater presence."
Deepwater exploration has been ramping up industrywide as
technology has made doing so less risky. Meanwhile, Mariner had
been looking to boost its onshore operations, in December agreeing
to a $215 million acquisition.
Apache shares closed at $108.06 Wednesday and were inactive
premarket.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com