CALGARY, Nov. 17, 2016 /CNW/ - (ARX - TSX) ARC Resources Ltd. ("ARC") announced today that it has reached an agreement to sell all of its Saskatchewan assets and operations, which produce approximately 7,500 barrels of oil equivalent ("boe"), to Spartan Energy Corp. (SPE - TSX) for a total cash consideration of $700 million. "Our talented field and technical teams were instrumental in creating significant value for our shareholders from our high-quality Saskatchewan assets over the past 20 years. This strategic transaction will allow ARC to continue to create value for shareholders by developing our premium-quality Montney asset base," said Myron Stadnyk, ARC's President and CEO. "Funds from this transaction will further strengthen ARC's balance sheet, provide additional optionality in funding our capital programs, and manage risk while transforming our business with larger-scale, highly-profitable projects." ARC has been actively managing its asset portfolio by divesting of over 14,000 boe per day of production since 2009. With this transaction, divestments of approximately 21,500 boe per day of production have led to increased operating and capital efficiencies, a continued focus on ARC's core Montney asset base, and will continue to improve ARC's long-term profitability. ARC has numerous projects that can deliver profitable returns for its shareholders; these projects compete with the best opportunities in the tight oil and shale gas plays across North America. ARC is highly confident that the reserves and production divested will be more than replaced over time, as ARC develops its Montney opportunities in Dawson, Parkland/Tower, Sunrise, Pouce Coupe, Attachie, Septimus, Blueberry and Sundown; ARC's Total Petroleum Initially-in-Place ("TPIIP") in these properties is in excess of 90 Tcf of shale gas and 9.7 billion barrels of tight oil. In addition, ARC will continue to invest in its core Alberta properties at Ante Creek (conventional Montney light oil and natural gas) and Pembina (Cardium light oil). ARC will update its 2017 budget and guidance with its fourth quarter 2016 news release in February, 2017. Effective January 1, 2017, ARC will eliminate the discount to the Dividend Reinvestment Plan ("DRIP") and Stock Dividend Program ("SDP"), subject to applicable regulatory and stock exchange approvals, and will review its DRIP and SDP programs in conjunction with the updated 2017 budget and guidance. The sale includes approximately 7,500 boe per day of production, as at the third quarter of 2016, with 37,893 Mboe of proved plus probable reserves at year-end 2015. The transaction is subject to the satisfaction of normal closing conditions, as well as regulatory approvals and customary post-closing adjustments. The transaction is expected to close on or about December 8, 2016, with an effective date of October 1, 2016. RBC Capital Markets is acting as exclusive financial advisor and Burnet, Duckworth & Palmer LLP is acting as legal counsel on the transaction. Forward-looking Information and Statements This news release contains forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect," "anticipate," "continue," "estimate," "objective," "ongoing," "may," "will," "project," "should," "believe," "plans," "intends," "strategy," and similar expressions are intended to identify forward-looking information and statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to benefits of the proposed transaction (including creating value for shareholders by developing ARC's Montney asset base, strengthening ARC's balance sheet to fund capital programs and managing risk, transforming the business with larger-scale, highly-profitable projects, and improving long-term profitability), delivering profitable returns for shareholders, replacing reserves and production with the development of ARC's Montney opportunities, reserves and resource estimates, investment intentions with respect to ARC's Alberta properties, updating ARC's 2017 budget and guidance with ARC's fourth quarter 2016 news release, expected closing the proposed transaction, and other statements and information that are forward-looking in nature. Statements relating to "reserves" or "resources" are also forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the reserves or resources described can be profitably produced or recovered in the future. The forward-looking information and statements contained in this news release reflect several material factors, expectations and assumptions of ARC, including, without limitation: the production performance of ARC's crude oil and natural gas assets; the cost and competition for services throughout the oil and gas industry in 2017; the results of exploration and development activities during 2017; the general continuance of current industry conditions; the continuance of existing (and in certain circumstances, the implementation of proposed) tax, royalty and regulatory regimes; the accuracy of the estimates of ARC's reserves and resource volumes; certain commodity price and other cost assumptions for 2016 and 2017; the retention of ARC's key properties; that the asset disposition will be completed on the terms and timing anticipated; and the continued availability of adequate debt and equity financing and funds from operations to fund its planned expenditures. ARC believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable, but no assurance can be given that these factors, expectations and assumptions will prove to be correct.
Aeroflex (ARX) surged more than 25% to a one-year high of $10.47 on Tuesday after British aerospace and defense supplier Cobham announced it would purchase the U.S. communications equipment manufacturer for $920 million.
Acquisitive U.K. aerospace company Cobham on Tuesday agreed to buy Plainview, N.Y-based Aeroflex Holding for $1.5 billion in cash and debt to further expand its communications business and offer new markets for the target's products.
Shares of Aeroflex Holding (ARX) are up over 24% in pre-market trade after it was announced that the wireless communications firm entered into a merger agreement with U.K.-listed Cobham in a deal valued at $920 million.