Freeport-McMoRan & PXP Reach Deal for $6.9 Billion

FCX Gains 60,000 Net Acres in the Eagle Ford Shale

PXP Eagle Ford Map

PXP Eagle Ford Map | Click to Enlarge

Freeport McMoRan Copper & Gold (FCX) announced plans to acquire Plains Exploration & Production (PXP) and McMoRan Exploration (MMR) on December 5, 2012. FCX will pay $6.9 billion (24% premium) for Plains E&P and will pay $2.1 billion (74% premium) for McMoRan Exploration. FCX said it is bullish natural gas prices post 2013, but will have to make good investment decisions with the amount of debt that will be carried.

The company is combining the Gulf of Mexico interests of the two companies, gets long-lived assets in California from PXP, and gains exposure to the Eagle Ford Shale. [Read more…]