Stone Energy to buy Bois d'Arc Energy for $1.65 billion
HOUSTON—Oil and natural gas producer Stone Energy Corp. said Wednesday it will buy Bois d'Arc Energy in a cash and stock deal valued at about $1.65 billion.
The companies value the deal at about $1.8 billion, including debt.
Under the deal's terms, Bois d'Arc stockholders will receive $13.65 in cash and 0.165 shares of Stone common stock for each share of Houston-based Bois d'Arc they own. The offer price values the company at about $24.85 per share, a 4 percent discount to Bois d'Arc Energy Inc.'s closing price Tuesday of $25.98.
Lafayette, La.-based Stone Energy expects to fund the deal with cash and borrowings from a new credit facility and a stock offer.
Stone said the purchase will create one of the largest oil and gas companies with operations focused in the Gulf of Mexico.
When the deal closes, expected in the third quarter, Stone expects to produce about 300 million cubic feet equivalent per day and have over 700 billion of cubic feet equivalent in estimated proved reserves. The transaction's close is pending regulatory and other approvals.
Frisco, Texas-based Comstock Resources Inc. owns a 49 percent stake in Bois d'Arc. Comstock has said it has entered a stockholder agreement to vote in favor of the deal.
Bois d'Arc Chief Executive Gary Blackie and director and former Chief Executive Wayne Laufer have also agreed to vote for the deal. Blackie owns a 8 percent stake in Bois d'Arc, and Laufer holds 10 percent.
In morning trading, shares of Bois d'Arc fell $1.79, or 6.9 percent, to $24.19. Stone Energy lost $2.65, or 3.9 percent, to $65.20. Comstock shares rose $1.24, or 2.8 percent, to $46.22.
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AP Business Writer Samantha Bomkamp in New York.
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