Plains Exploration & Production Acquires 3TEC Energy for $432 Million<br> in Cash, Stock and Assumed Debt
(Houston, Texas) – Houston-based Plains Exploration & Production Company (NYSE:PXP) has acquired 3TEC Energy Corporation for a combination of stock and cash in a transaction valued at $432 million, including assumption of debt of approximately $100 million.
Following the acquisition, Plains is expected to have an enterprise value of over $900 million, with core areas of production in Southern California, East Texas and South Louisiana. A company-transforming event for Plains, the purchase will diversify both its reserve base (by expanding outside of Southern California) and production mix (by adding significant gas production).
Akin Gump Strauss Hauer & Feld LLP represented Plains in the transaction. David Elkouri of Hinkle Elkouri Law Firm L.L.C. in Wichita, Kansas, and Dallas Parker of Thompson & Knight LLP in Houston assisted 3TEC.
Plains Exploration is an independent oil and gas company primarily engaged in the upstream activities of acquiring, exploiting, developing and producing oil and gas in its core areas of operation: onshore California, primarily in the Los Angeles Basin; offshore California in the Point Arguello unit; and the Illinois Basin in southern Illinois.
3TEC is engaged in the acquisition, development, production and exploration of oil and natural gas reserves. The company’s properties are concentrated in East Texas and the Gulf Coast region of the United States, both onshore and in the shallow waters of the Gulf of Mexico.
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