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…]

PXP Eagle Ford Production Grows Ten-Fold Year Over Year to 25.7 Mboe/d

More than 9 rigs net to PXP are operating across the company's 60,000 net acres
PXP Eagle Ford Production and Capital Plans

PXP Production & Capital Expenses | Click to Enlarge

Plains Exploration & Production (PXP) delivered strong Eagle Ford production growth numbers. The company averaged more than 25,000 boe/d in the second quarter, up from just a little over 2,000 boe/d for the same period in 2011.

CEO James C. Flores commented:

“We had an impressive quarter with continued robust Eagle Ford expansion and solid California operating performance demonstrating the strength of the Company’s underlying oil asset base………In the short-term, PXP is providing stellar execution of its Eagle Ford growth plan. We are not only seeing strong production growth but also beginning to see efficiencies across all aspects of our Eagle Ford activity.[Read more…]

Plains Exploration & Production (PXP) Eagle Ford Production Over 9,000 boe/d

Plains Exploration and Production (PXP) produced an average of more than 9,000 boe/d from the Eagle Ford Shale in the fourth quarter and added more than 22 million boe of proved reserves during 2011. The company’s acreage is primarily located in the oil and gas-condensate windows in Karnes County.  [Read more…]

PXP Announces Eagle Ford Oil Acquisition

Plains Exploration and Production pays $578 million ($9,600 per acre) to adds Eagle Ford Shale acreage.  The properties are located in the liquids-rich gas condensate window of the Eagle Ford and approximately 20,400 acres overlap a joint operating area with EOG Resources.

“PXP has agreed to acquire interests in approximately 60,000 net acres in the Eagle Ford oil and gas condensate windows in South Texas for $578 million in cash. Of the 60,000 net acres, approximately 20,400 net acres are located in a joint operating area between PXP and EOG Resources, Inc. (NYSE: EOG). The Eagle Ford properties are located primarily in Karnes County of South Texas and have net resource potential of approximately 140 to 175 million BOE, projected net production capability of approximately 2,000 BOE per day and a year-end 2011 production target exit rate of approximately 5,000 BOE per day net to PXP.”

Read the press release at pxp.com

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