Murphy Oil Buys LLOG
Murphy Oil buys LLOG.
Regionally, Murphy is a major player in both the Gulf and in South Texas' Eagle Ford shale. Late last year, Murphy created a joint venture with Brazil's Petrobras in the Gulf of Mexico for Murphy to increase its holdings in the deep-water region.
Roger W. Jenkins of Murphy Oil said: ‘This immediately accretive transaction continues to strengthen our Gulf of Mexico portfolio by adding quality assets at an attractive price. We expect these newly acquired assets to generate meaningful cash flow over the next years that will give us added flexibility for future capital allocation. Since selling our refining business and spinning-out our retail gasoline business over five years ago, we have implemented significant strategic changes in revamping Murphy’s portfolio. Specifically, over the last months alone we have increased our deep-water, oil-weighted, tax-advantaged, Gulf of Mexico assets while we simplified our company by divesting our Malaysian portfolio, again at an attractive price. What I am most proud of is that through these transactions we have created significant shareholder value. As a result, we have increased our ability to generate meaningfully more cash flow in our long term plan as Murphy is now positioned to grow oil production with a compound annual growth rate of 7-9 percent, all while maintaining our compelling dividend, repurchasing our stock, and decreasing our debt levels.’
Barclays serves as exclusive financial adviser to LLOG. Jones Walker LLP, Gieger, Laborde, & Laperouse, and Kirkland & Ellis served as legal advisers.
Murphy Oil Corp buys Gulf of Mexico assets from LLOG Exploration Offshore and LLOG Bluewater Holdings for $1.38 billion.
The LLOG sale includes 26 blocks in the Gulf of Mexico with 7 operating fields producing 38,000 barrels of oil equivalent a day. The deal also includes 4 development projects with future start-up dates in the Mississippi Canyon and Green Canyon areas.
The LLOG sale includes 26 blocks in the Gulf of Mexico with 7 operating fields producing 38,000 barrels of oil equivalent a day. The deal also includes 4 development projects with future start-up dates in the Mississippi Canyon and Green Canyon areas.
Regionally, Murphy is a major player in both the Gulf and in South Texas' Eagle Ford shale. Late last year, Murphy created a joint venture with Brazil's Petrobras in the Gulf of Mexico for Murphy to increase its holdings in the deep-water region.
Roger W. Jenkins of Murphy Oil said: ‘This immediately accretive transaction continues to strengthen our Gulf of Mexico portfolio by adding quality assets at an attractive price. We expect these newly acquired assets to generate meaningful cash flow over the next years that will give us added flexibility for future capital allocation. Since selling our refining business and spinning-out our retail gasoline business over five years ago, we have implemented significant strategic changes in revamping Murphy’s portfolio. Specifically, over the last months alone we have increased our deep-water, oil-weighted, tax-advantaged, Gulf of Mexico assets while we simplified our company by divesting our Malaysian portfolio, again at an attractive price. What I am most proud of is that through these transactions we have created significant shareholder value. As a result, we have increased our ability to generate meaningfully more cash flow in our long term plan as Murphy is now positioned to grow oil production with a compound annual growth rate of 7-9 percent, all while maintaining our compelling dividend, repurchasing our stock, and decreasing our debt levels.’
The deal will be funded by a blend of cash on hand and availability under the company’s $1.6 billion revolving credit line. Total outstanding borrowings under this facility will be fully settled upon conclusion of the $2.13 billion divestiture of Murphy’s Malaysian assets, disclosed earlier in March.
Scotia Capital (USA) and Baker Botts serve as advisers to Murphy on the deal.
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