Devon acquires Anderson for $4.6 billion
4 Sep 2001
The boards of directors of Devon Energy Corporation and Anderson Exploration have unanimously approved an acquisition agreement.
Pursuant to the agreement, Devon has agreed to acquire the outstanding common shares of Anderson for $25.80 per share in cash. The aggregate value of the offer, including Devon's assumption of approximately $1.2 billion of debt and other obligations of Anderson, is approximately $4.6 billion.
In the Anderson transaction, Devon will acquire estimated proved reserves of 532 million barrels of oil equivalent and approximately eight million net undeveloped acres. Devon has allocated $680 million of the aggregate purchase price to Anderson's undeveloped acreage and seismic data.
The agreement follows Devon's August 14th announcement that it intends to acquire Mitchell Energy & Development for a total of US$3.5 billion.
Upon successful completion of both transactions, Devon will be the largest independent producer of oil and natural gas in North America. Both transactions are expected to close in the fourth quarter of 2001.
Devon's Canadian operations are conducted by its wholly-owned subsidiary headquartered in Calgary. Anderson's operations will be merged with Devon's Canadian operations.
