Newfield Exploration Co., Houston, is acquiring Lariat Petroleum Inc. for approximately $333 million, including the assumption of Lariat's debt.
Lariat is a private, independent exploration and production company primarily focused in the Anadarko Basin of Oklahoma. As of June 30, 2000, Lariat had proved reserves of 256 bcf equivalent. About 75% of Lariat's proved reserves are natural gas and 90% are in Oklahoma.
Lariat shareholders would get $180 million, about half in cash and half in Newfield common stock. The balance of the $333 million will go toward Lariat's debt and certain other obligations. The transaction is expected to close in mid-January.
David Trice, Newfield president and CEO, said, "During the past year, we've talked about adding a new focus area in another major US gas producing basin. We have emphasized that the best way for Newfield to accomplish this objective would be through the acquisition of an operating E&P company with strong management and quality assets."
Lariat President and CEO Randy Foutch will continue in those positions. He said, "Lariat is pleased with the similarities between the two companies' business principles and cultures. These similarities, combined with Newfield's financial strength, will allow us to grow this new focus area for Newfield. I'm pleased to join the Newfield management team."
Lariat drilled nearly 100 wells in 2000 (91 in Oklahoma and seven in the Permian Basin). Its production was 45 million MMcfd and 1,900 b/d of oil.
Newfield's reserves are more than 900 bcf equivalent. It will continue to focus on the Gulf of Mexico, where 60% of its reserves are located.
