Plains Exploration to Acquire Nuevo Energy in $945 Million Deal

(Houston, Texas) – Independent oil and gas concern Plains Exploration & Production Company (NYSE: PXP) announced today that it has entered into a definitive agreement to acquire Nuevo Energy Company (NYSE: NEV) in a stock-for-stock transaction valued at approximately $945 million.

Upon completion of the transaction, Plains Exploration will issue up to 37.4 million shares to Nuevo shareholders and assume $234 million of net debt and $115 million of Trust Convertible Preferred Securities. Under the terms of the transaction, Nuevo stockholders will receive 1.765 shares of Plains Exploration’s common stock for each share of Nuevo common stock. Following the acquisition, Plains Exploration will have a large proved reserve base of approximately 489 million barrels (349 million in the proved developed category), of which 97 percent are in the United States; a significantly improved balance sheet; and an attractive growth profile.

Akin Gump Strauss Hauer & Feld LLP represented Plains Exploration. 

About Akin Gump

Founded in 1945, Akin Gump Strauss Hauer & Feld LLP, a leading international law firm, numbers 950 lawyers with offices in Albany, Austin, Brussels, Chicago, Dallas, Houston, London, Los Angeles, Moscow, New York, Northern Virginia, Philadelphia, Riverside, Riyadh (affiliate), San Antonio, San Francisco and Washington. The firm has a diversified practice and represents regional, national and international clients in a wide range of areas, including antitrust; banking and financial institutions; capital markets; communications; corporate and securities; employee benefits; energy, land use and environment; entertainment; estate planning, wealth transfer and probate; financial restructuring; government contracts; health; insurance; intellectual property; international; investment management; labor and employment; litigation; mergers and acquisitions; privatization; project development and finance; public law and policy; real estate and finance; taxation; and technology. 

About Plains Exploration

Formed in 1976, Houston-based Plains Exploration is primarily engaged in the upstream activities of exploring for, acquiring, exploiting, developing and producing oil and gas in the United States, with core operating areas in California, the Gulf Coast and East Texas.

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