Plains Exploration Picks Up Pogo Producing
Pogo shareholders will receive 0.68201 shares of Plains stock and $24.88 in cash for each share they hold. Based on Plains' closing price Monday, the deal values Pogo at $60 a share -- a 19% premium over its close of $50.48 Monday.
Plains said the transaction will create a company with total estimated reserve potential of 1.4 billion barrels of oil equivalent.
"This transaction almost doubles PXP's production with the addition of substantial producing properties and significant growth potential in Texas, primarily the Panhandle, Permian and Gulf Coast, plus the prolific Madden Field in Wyoming and the San Juan Basin in New Mexico," said Plains Chairman, President and CEO James Flores in a statement.Flores said the company has financial advisers to help it evaluate the possibility of becoming a master limited partnership, a common structure for oil and gas companies. The deal is expected to close in the fourth quarter. Shares of Plains were down $1.69, or 3.3%, to $49.50 in early trading. Pogo shares soared $7.22, or 14%, to $57.70.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV