Introduction

The Energy Information Administration reviews mergers, acquisitions, and alliances by companies that are respondents to Form EIA-28 (Financial Reporting System (FRS)), or that result in a company that meets the FRS reporting criteria. The review is confined to a presentation of pertinent operating data of the companies and assets involved in the transaction. The FRS reporting criteria are one percent, or more, of U.S. crude oil and natural gas liquids, or natural gas production, or one percent, or more, of U.S. refinery crude oil distillation capacity.

Background

On April 15, 2010, Apache Corp announced that it had agreed to acquire Mariner Energy in a $3.9 billion transaction in which each common share of Mariner may be exchanged for 0.17043 shares of Apache stock and $7.80, which represents a 45 percent premium relative to the Mariner share price on April 14, 2010.   The transaction value includes $1.2 billion of Mariner debt.   The transaction is expected to close in the third quarter of 2010, subject to Mariner shareholder and regulatory approval.

Although the transaction does not materially affect Apache's ranking among U.S. crude oil or natural gas producers, it has a broader effect on the company. In particular, according to Apache's April 15 press release^a , "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."

Earlier this week (April 12) Apache announced that it had agreed to acquire Devon Energy's assets on the Gulf of Mexico's continental shelf for $1.05 billion.^b  The following table provides company-level data from various public sources to inform discussions of the Apache-Mariner and Apache-Devon transactions.   Additional information is available from the websites of Apache, Mariner, and Devon, including the most recent annual report of Apache, Mariner (PDF-format), and of Devon. This data presentation is similar to data presentations that have been previously requested from EIA for other significant energy company mergers and/or corporate alliances.

^a "Apache Gains Strategic Position in Deepwater Gulf With Mariner Merger," Apache Corporation (April 15, 2010).

^b "Apache to Acquire Devon's Gulf of Mexico Shelf Assets," Apache Corporation (April 12, 2010).

URL: http://www.eia.gov/emeu/finance/mergers/apa_me_index.html

File last modified: April 15, 2010

A PDF-format version (2 pages, 19 kilobytes) is also available

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