By OGJ editors
HOUSTON, Jan. 26 -- Cimarex Energy Co., Denver, is acquiring Magnum Hunter Resources Inc., Irving, Tex., in a $2.1 billion transaction.
The acquisition will triple reserves for Cimerax, double production, and extend its reserve life.
As of Oct. 1, 2004, Magnum Hunter's internally estimated total proved reserves were 1 tcfe, of which 61% was natural gas and 72% was proved developed.
In the third quarter of 2004, Magnum Hunter's production averaged 165 MMcfd of natural gas and 11,563 b/d of oil.
It operates mainly in Southeast New Mexico, other Permian basin, the Midcontinent area, the onshore Gulf Coast, and shallow-water Gulf of Mexico.
Cimarex estimated that its yearend 2004 proved reserves totaled 449 bcfe, of which 81% was gas and 99% was proved developed.
Its third-quarter 2004 production averaged 176 MMcfd of gas and 7,358 b/d of oil.
Cimarex operates mainly in the Anadarko basin, on the Texas and Louisiana Gulf Coast, in the Mississippi Salt basin, and in northern California. It also has operations in North and South Texas, Kansas, New Mexico, Wyoming, and Montana.
The combined company pro forma statistics show yearend 2004 proved reserves of more than 1.3 tcfe, of which 68% was gas and 83% was proved developed.
Magnum Hunter shareholders are to receive 0.415-share of Cimarex common stock for each share of Magnum Hunter common stock. Cimarex will assume Magnum Hunter's $645 million in debt.