Australia’s largest specialist oil and gas company, via its wholly-owned subsidiary ATS, offered to buy New Orleans-based Energy Partners for $23 per share in cash. Woodside said its offer could increase to $24/share under certain circumstances.
ATS already owns 4.5% of Energy Partners via acquisitions on the open market in recent weeks.
Woodside chief executive Don Voelte told the Australian Stock Exchange this morning that the acquisition would immediately increase the company’s Gulf of Mexico production and reserves.
“We are building a significant presence in the Gulf and the acquisition of [Energy Partners] would be a valuable addition to what is already an important business for us,” he said.
“Woodside already has considerable operations in Louisiana and this acquisition allows us to grow our presence in the New Orleans area.”
The planned takeover follows last September’s acquisition by Woodside Energy USA of Houston-based Gryphon Exploration.
Energy Partners, which is listed on the New York Stock Exchange, has reported interests in 120 blocks, almost all of which are in the Gulf of Mexico. At the end of last year, it reported proved reserves of 59.3 million barrels of oil equivalent (boe), comprising 53.1% of oil and 46.9% of gas.
In the second quarter of 2006, Energy Partners recorded average daily production of 28,117boe.
Woodside said ATS’ $23/share offer represents a 25% premium on Energy Partners’ closing price on Friday of $18.40.
The takeover offer is conditional on Energy Partners’ shareholders voting down its proposed purchase of Stone Energy.
Energy Partners advised its stockholders to take no action at this time regarding the Woodside bid. Stone Energy said in a separate statement it intends to move forward on its proposed combination with Energy Partners.
Woodside is determined to build a major exploration and production hub in the Gulf.
In January last year, Woodside formed an alliance with Explore Enterprises of Louisiana to explore, buy and develop wells in the region.
Then in September it paid $US282.7 million ($A378.6 million) to acquire Houston-based Gryphon Exploration Company, a private upstream oil and gas company with extensive exploration and production interests in the Gulf.
