Houston Merger Creates ‘Largest’ Independent Energy Company in Mexican Gulf
HOUSTON, TEXAS--Energy XXI (Nasdaq: EXXI) formally announced today its plan to purchase and merge with EPL Oil & Gas, Inc. (NYSE: EPL) with a $2.3 billion deal to include a $707 million assumption of debt. The companies are touting the merger as creating, “the largest public independent producer on the Gulf of Mexico shelf, with production of approximately 65,000 barrels of oil equivalent (BOE) per day.”
Energy XXI expects the deal to create an “enterprise value of approximately $6 billion” owning and operating 10 oil fields.
Energy XXI Chairman and CEO
touted the merger as a perfect match in the Gulf Shelf, “EPL's assets and operations closely resemble our own, predominantly oil, with some of the highest margins in the industry and extraordinary opportunities for reserves and production growth through development and exploration activities.”
The EPL Oil & Gas purchase will offer consideration to shareholders valued at $39 per share or an option for Energy XXI shares. Select members of EPL’s Board of Directors will transfer to Energy XXI pending approvals. Energy XXI Chairman and CEO
is expected to retain his position after the deal is complete.
Energy XXI was formed in 2005 following a $300 million initial public offering. The company is headquartered in downtown Houston, Texas.
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