Energy
- Article Tools
- Email this Article
- Print this Article
- Rss Feed
- Related Articles
- Del.icio.us
- Digg
- StumbleUpon
Exploration-and-production company Forest Oil FST agreed Sunday to buy rival Wiser Oil WZR for $170 million in cash. The deal, which is valued at $330 million including assumption of debt, comes just a week after Dallas-based Wiser saw its debt ratings cut. In cutting its coprorate credit to B-minus from B, Standard & Poor's cited problems with the company's reserve erosion, cost structure and liquidity. The agreement gives Wiser shareholders a 32% premium over Friday's closing price. Denver-based Forest will pay $10.60 a share in cash and assume $160 million of debt in the deal. Forest said the agreement boosts reserves and production at its Canadian unit, building on its Canadian Plains operations, and expands the Western unit's reserves and output through an increasing Permian Basin position. The deal also adds significant Gulf Coast and Canadian exploration acreage. "Nine months ago we stated our goal to acquire properties in the Gulf Coast, Canada and the Permian Basin," said Forest CEO Craig Clark. "We have now achieved that goal with superior economics and high quality assets." On Friday, Forest closed at $24.02 and Wiser finished at $8.02.
08/05/08
Three Internet Stocks That Could Double
These forgotten Internet stocks are being accumulated by hedge funds.
08/15/08
The Five Dumbest Things on Wall Street
Raspberries for Apple; You'll be sorry, UBS; Fortress or Fort Knox? Wholly unappetizing Foods; give Liberty AOL or give them...
08/15/08
McCain Fund-Raising Picks Up
The GOP presidential candidate raised $27 million in July.
08/15/08
Cash-Back Cards Aren't Money in the Bank
Some credit and debit cards give you some cash back on purchases. But you need to manage it well to benefit from it.
More popular tickers are indicated by scale.
Sponsored by:
RSS
