HOUSTON, Nov. 10, 2010 /PRNewswire-FirstCall/ -- Apache
Corporation (NYSE, Nasdaq: APA) today announced that it has
completed its merger with Mariner Energy (NYSE: ME).
The merger closed today following its approval by Mariner's
stockholders and subsequent completion of documentation. Apache
issued approximately 17.5 million shares of its common stock and
paid approximately $800 million in cash to Mariner
stockholders. Apache also assumed Mariner's debt with current fair
value of approximately $1.6 billion.
As a result of the merger, former Mariner stockholders own
approximately 5 percent of Apache's outstanding shares of common
stock.
At a special meeting, 79 percent of Mariner's stockholders voted
to approve the merger.
Under the merger agreement, Mariner stockholders had the option
to elect to receive consideration consisting of cash, shares of
Apache common stock or a combination of both in exchange for their
shares of Mariner common stock, subject to a proration feature.
Mariner stockholders electing to receive a mix of cash and stock
consideration and non-electing stockholders will receive
$7.80 in cash and 0.17043 shares of
Apache common stock in exchange for each share of Mariner common
stock. Subject to proration, Mariner stockholders electing to
receive all cash will receive $26.00
in cash per Mariner share and Mariner stockholders electing to
receive only Apache common stock will receive 0.24347 shares of
Apache common stock in exchange for each share of Mariner common
stock. Trading in Mariner's common stock on the New York Stock
Exchange will cease after market close today.
"The Mariner merger – along with our $7
billion acquisition of BP's upstream operating regions in
the Permian Basin, Canada and
Egypt and our earlier $1 billion acquisition of Devon's Gulf of Mexico
Shelf assets – will provide Apache with a rich inventory of growth
and value-enhancement opportunities for years to come," said
G. Steven Farris, Apache's chairman
and chief executive officer.
At year-end 2009, Mariner had estimated proved reserves of 181
million barrels of oil equivalent (boe) (47 percent liquid
hydrocarbons) in the Gulf Shelf and deepwater, onshore Gulf Coast,
Permian Basin and unconventional onshore plays, as well as unbooked
resource potential of 2 billion boe. Mariner's deepwater portfolio
includes 125 blocks, seven discoveries in development – including
interests in the world-class Lucius and Heidelberg discoveries –
and more than 50 prospects. During the third quarter, Mariner
produced 51,348 boe per day.
"Apache's team – including new people from Mariner, BP and Devon
– is looking forward to tackling the enlarged opportunity base that
these assets bring to three core regions in our portfolio," Farris
said. "The Mariner merger also adds a new dimension to our
portfolio – deepwater oil exploration.
"Apache has a truly unique culture, with a strong sense of
urgency, the empowerment of our employees, and an independent
mindset; it's at the heart of how we build value," Farris said.
"Apache's sense of urgency was a factor in our team's ability to
attain seven of the 13 new drilling permits approved by federal
regulators for all operators since June."
Apache Corporation is an oil and gas exploration and production
company with operations in the United
States, Canada,
Egypt, the United Kingdom North
Sea, Australia and Argentina. Apache posts announcements,
updates, investor information and all press releases, on its
website, www.apachecorp.com.
Forward-Looking Statements
This news release contains certain "forward-looking statements"
within the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995 including, without
limitation, expectations, beliefs, plans and objectives regarding
production and exploration activities. Any matters that are not
historical facts are forward-looking and, accordingly, involve
estimates, assumptions, risks and uncertainties, including, without
limitation, risks, uncertainties and other factors discussed in our
most recently filed Annual Report on Form 10-K, recent Quarterly
Reports on Form 10-Q, recent Current Reports on Form 8-K available
on our website, http://www.apachecorp.com/, and in our other public
filings and press releases. There is no assurance that Apache's
expectations will be realized, and actual results may differ
materially from those expressed in the forward-looking statements.
We assume no duty to update these statements as of any future date.
However, readers should review carefully reports and documents that
Apache files periodically with the Securities and Exchange
Commission.
Website: www.apachecorp.com
APA-F
SOURCE Apache Corporation