Printer Friendly

DEVON ENERGY CLOSES STOCK OFFERING; HONDO PROPERTIES ACQUIRED

 DEVON ENERGY CLOSES STOCK OFFERING; HONDO PROPERTIES ACQUIRED
 OKLAHOMA CITY, July 2 /PRNewswire/ -- Devon Energy Corp. (AMEX: DVN) closed an offering of 9.2 million shares of common stock yesterday, July 1. Simultaneously, the company closed its previously announced acquisition of substantially all of the U.S. oil and gas properties of Hondo Oil & Gas Company for $126.6 million.
 Share volume and proceeds higher than anticipated underwriters for the offering have exercised their over-allotment option. Consequently, a total of 9.2 million primary common shares, rather than the previously announced 8.0 million, were issued to the underwriters. The price to the public was $10 per share. Net proceeds of the offering, $86.6 million, were $11.4 million higher than previously anticipated.
 To show the effect of the increased offering proceeds, the company released a revised pro forma balance sheet as of March 31, 1992. An actual balance sheet as of July 1,1992 was not yet available.
 Acquisition Of Hondo Properties Closed
 Coincidentally with closing the stock sale, Devon closed its acquisition of substantially all of the U.S. oil and gas properties of Hondo Oil & Gas Company. The $86.6 million of net proceeds were immediately used to partially fund the Hondo property acquisition. The difference between the $126.6 million purchase price and the $86.6 million offering proceeds was funded with bank debt. Accordingly, Devon's long-term debt rose to approximately $74 million on July 1, $10 to $12 million less than originally anticipated.
 Approximately $110 million of the $126.6 million purchase price was attributable to the proved reserves acquired. As of July 1, proved reserves for the acquisition were estimated to be 13.3 million barrels of oil and 91.3 billion cubic feet of gas.
 Approximately $16 million of the remaining purchase price was attributable to other assets being acquired. These assets include 218,000 net acres of undeveloped leasehold (drilling rights, seismic and other geologic data), and other miscellaneous net assets.
 Acquisition More Than Doubles Devon
 J. Larry Nichols, president and chief executive officer, said, "This acquisition is another major step toward building Devon into a leading independent U.S. oil and gas producer. This acquisition increases our total oil reserves by 280 percent to approximately 17 million barrels. Our gas reserves go up by almost 50 percent to 260 to 270 billion cubic feet. With the Hondo properties and with production from our Northeast Blanco Unit (NEBU) still increasing, our second half 1992 production volumes should be dramatically higher compared to last year's second half. Oil production should rise by somewhat more than 400 percent to 1.3 million barrels. Gas production should rise 120 to 140 percent to approximately 18 billion cubic feet compared to 7.8 billion cubic feet for the second half of 1991.
 "The financial effects of the acquisition and increasing volumes at NEBU should also be substantial. We expect total revenues, cash flow and earnings to be up for the second half. Additionally, when combined with the stock offering, our total assets more than double. Even though total debt also rises, our balance sheet ratios and total liquidity improve," Nichols concluded.
 Devon Energy Corp. is an independent energy company engaged primarily in oil and gas property acquisitions, exploration and production, and oil and natural gas remarketing. The company ranks in the top 25 percent of U.S. publicly held oil and gas firms, measured by oil and gas reserves. Devon Energy's common and preferred shares trade on the American Stock Exchange under the symbols "DVN" and "DVN.Pr," respectively.
 DEVON ENERGY CORP.
 Balance Sheet
 (In thousands)
 Pro Forma
 Actual w/ Hondo
 As of March 31, 1992 Devon Properties
 Current assets $12,938 $19,998
 Net oil & gas properties 81,644 209,193
 Other assets 3,304 4,305
 Total assets $97,886 $233,496
 Current liabilities 8,359 12,540
 Revenues & royalties
 due to others 1,292 1,292
 Deferred revenue 1,781 1,781
 Long-term debt 32,000 76,779
 Deferred income taxes 1,215 1,215
 Total liabilities 44,647 93,607
 Preferred stock 1,170 1,170
 Common stock 869 1,789
 Additional paid-in capital 56,087 141,817
 Retained earnings (deficit) (4,887) (4,887)
 Total stockholders' equity 53,239 139,889
 Total liabilities and
 stockholders' equity $97,886 $233,496
 -0- 7/2/92
 /CONTACT: H. Allen Turner, vice president-corporate development of


Devon Energy, 405-235-3611; Lynne Franklin or Nick Farina, 312-266-7800, or Kathy Phelan, 212-661-8030, all of the Financial Relations Board/
 (DVN) CO: Devon Energy Corp. ST: Oklahoma IN: OIL SU: OFR TNM


SM -- NY043 -- 6194 07/02/92 13:15 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 2, 1992
Words:772
Previous Article:LENNAR PARTNERSHIP COMPLETES PURCHASE OF AMERIFIRST ASSET POOL
Next Article:DONATOS WILL STAY AT OHIO STATE FAIR
Topics:


Related Articles
DEVON ENERGY AND HONDO OIL & GAS NEGOTIATING PURCHASE/SALE OF HONDO'S U.S. OIL AND GAS PROPERTIES
HONDO SIGNS AGREEMENT TO SELL DOMESTIC OIL AND GAS PROPERTIES TO DEVON ENERGY
DEVON ENERGY SIGNS PURCHASE AGREEMENT FOR $139.2 MILLION
DEVON ENERGY NEGOTIATING TO BUY OIL AND GAS ASSETS FOR $140 MILLION: TO FILE REGISTRATION STATEMENT TO OFFER NEW COMMON SHARES
DEVON ENERGY REPORTS $0.8 MILLION EARNINGS COMPARED WITH LOSS; PRODUCTION, REVENUES UP FOR FIRST QUARTER
DEVON ENERGY AND HONDO OIL & GAS SET $126.6 MILLION PURCHASE/SALE PRICE; STOCKHOLDER APPROVAL AND FINANCING OBTAINED
DEVON ENERGY CONVERTIBLE PREFERRED STOCK REDEEMED
DEVON ENERGY REPORTS RECORD PRODUCT AND RESERVES FOR 1992; RESERVE REPLACEMENT EXCEEDS 500 PERCENT
DEVON ENERGY CORP. ANNOUNCES RECORD FIRST QUARTER PRODUCTION, REVENUES AND EARNINGS
HONDO MAGDALENA REACHES PRELIMINARY UNDERSTANDING WITH AMOCO COLOMBIA

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters