HOUSTON (AP) — Energy XXI is buying EPL Oil & Gas Inc. for about $1.53 billion in a deal that the companies say will create the biggest publicly-owned independent oil producer on the Gulf of Mexico shelf.
Energy XXI Executive Vice President of Exploration and Production Ben Marchive said in a statement that once the acquisition closes the combined company will own and operate 10 oil fields on the shelf with cumulative production each exceeding 80 million barrels of oil.
"EPL's assets and operations closely resemble our own, predominantly oil, with some of the highest margins in the industry and extraordinary opportunities for reserves and production growth through development and exploration activities," Energy XXI Chairman and CEO John Schiller said.
Schiller will serve as chairman and CEO of the combined company, which will be based in Houston where EPL has headquarters.
The transaction is a cash-and-stock deal. EPL stockholders can choose to receive $39 per EPL share, a 34 percent premium to the company's Tuesday closing price of $29.11. They can also elect to receive 1.669 common shares of Energy XXI, or a combination of cash and stock.
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