SEC gives nod to H&P proposed spin-off, Key Production merger

Helmerich & Payne Inc. reported that the US Securities and Exchange Commission has declared effective the registration statement of H&P's wholly owned subsidiary, Cimarex Energy Co.

By OGJ editors

HOUSTON, Sept. 12 -- Tulsa-based contract drilling and service company Helmerich & Payne Inc. reported that the US Securities and Exchange Commission has declared effective the registration statement of H&P's wholly owned subsidiary, Cimarex Energy Co. Earlier this year, H&P proposed the spin-off of its oil and gas division as a separate public firm to be named Cimarex, which would in turn acquire Denver-based Key Production Co. (OGJ Online, Feb. 25, 2002).

Key Production shareholders will vote on the merger Sept. 20. If approved, the spin-off and subsequent merger is expected to close Sept. 30, H&P said. Cimarex also has applied for listing on the New York Stock Exchange.

H&P's rig fleet includes 64 US land rigs, 12 offshore platform rigs, and 33 international land rigs. Average rig utilizations for those markets are currently 88%, 58%, and 36%, respectively, H&P stated.

H&P has estimated its capital expenditures for fiscal year 2003 to be $195 million, which includes $100 million for the completion of 17 FlexRigs during the year.

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