The acquisition will create one of the largest independent oil exploration and production companies in North America.
Under the terms of the deal, Plano, Texas-based Denbury plans to pay $50 for each share of Encore, an almost 35% premium to the $37.07 price where Encore shares closed Friday. Encore shareholders will receive $15 in cash and $35 in Denbury's common stock for each of their shares.
Encore has about 52.8 million shares outstanding, giving the equity portion of the deal a value of about $2.64 billion. Denbury also will assume Forth Worth, Texas-based Encore's debt and the value of its minority interest in Encore Energy Partners (ENP) .The merged company will take Denbury's name and will be headquartered in Plano, Texas. Denbury shares closed Friday at $14.60.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV