Stone Energy, Bois d'Arc Energy combine

By Lisa Kerner

Charlotte, N.C., Aug. 28 - Stone Energy Corp. completed its acquisition of Bois d'Arc Energy, Inc. following shareholder approval for the $1.8 billion deal on Wednesday.

Bois d'Arc shareholders will receive $13.65 per share in cash plus 0.165 shares of Stone common stock for each share of Bois d'Arc common stock, a Stone news release said.

According to Stone, it paid approximately $935 million in cash and issued approximately 11.3 million shares in connection with the transaction.

The company funded the cash portion of the acquisition with cash on hand of approximately $510 million and borrowings of $425 million under a newly amended and restated $700 million credit facility, the release said.

Comstock Resources, Inc. sold its 49% interest in its subsidiary Bois d'Arc for $440 million in cash and 5,317,069 shares of Stone common stock.

A Comstock news release said the company used the cash proceeds to repay amounts outstanding under its bank credit facility.

"We expect to move quickly to absorb operations and to accelerate our combined drilling program," Stone president and chief executive officer David Welch said.

"Even after this acquisition, our balance sheet remains strong and we expect to generate significant free cash flow for the remainder of the year as our combined daily production is expected to be 290 million to 320 million cubic feet equivalent in the fourth quarter," Welch said.

Bois d'Arc, based in Houston, and Stone Energy, located in Lafayette, La., are independent oil and natural gas exploration companies.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.