This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Forestar Completes Acquisition Of Credo Petroleum

Forestar Group Inc. (NYSE: FOR) today announced the completion of its acquisition of CREDO Petroleum Corporation (“Credo”) for approximately $146 million in cash, excluding closing costs. The company funded the purchase with borrowings under its senior credit facility and available cash.

“We are confident this strategic transaction will generate solid returns and accelerate the value to be realized from our oil and gas assets,” said Jim DeCosmo, president and chief executive officer of Forestar. “The acquisition of Credo is expected to double production and reserves, provide meaningful ownership in strategic oil and gas basins and further enhance our transparency and disclosure. In addition, we expect the acquisition to be accretive to earnings in 2013, create a meaningful oil and gas platform and further enhance shareholder value going forward.”

Credo is an oil and gas exploration, development and production company based in Denver, Colorado which owns leasehold interests in over 135,000 net mineral acres. Formations include the Bakken and Three Forks of North Dakota, Lansing – Kansas City in Kansas and Nebraska, and Tonkawa and Cleveland in the Texas Panhandle. Credo owns working interests in approximately 380 producing wells and overriding royalty interests in approximately 1,200 wells.

“Credo is in the early stages of development relative to its position in the prolific Bakken and Three Forks formations. We are just now beginning to see production growth as oil was up over 90% in fiscal third quarter 2012 compared with third quarter 2011. Going forward, we expect significant production and reserve growth in the Bakken and Three Forks as well as a meaningful contribution from exploration and drilling activity in Kansas, Nebraska and Texas. Following this transaction, Forestar has a solid balance sheet with over $160 million in available liquidity, and is well positioned to accelerate value realization, capitalize on growth opportunities and grow net asset value,” concluded Mr. DeCosmo.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG

Markets

DOW 18,285.74 +0.34 0.00%
S&P 500 2,130.82 +4.97 0.23%
NASDAQ 5,090.7940 +19.0510 0.38%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs