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Kosmos Energy Closes USD 1.225bn Acquisition of Deep Gulf Energy in GOM Expansion.


18 September 2018 - US-based deepwater oil and gas company Kosmos Energy (NYSE: KOS) has closed an acquisition of Gulf of Mexico-focused deepwater company Deep Gulf Energy from First Reserve and other shareholders for a total consideration of USD 1.225bn, subject to certain adjustments, the company said.

By acquiring DGE, Kosmos adds to its deepwater Atlantic Margin portfolio an established business with attractive assets and a strong record of growing production and reserves through infrastructure-led exploration.

This immediately accretive acquisition enhances the scale of the company and is expected to generate significant free cash flow, enabling Kosmos to return cash to shareholders through a dividend, beginning in 1Q19.

Under the terms of the transaction, Kosmos will acquire DGE for total consideration of USD 1.225bn, comprised of USD 925m in cash and USD 300m in Kosmos common shares issued to First Reserve, management, and other DGE shareholders.

Kosmos plans to fund the cash portion of the purchase price with borrowings under its existing credit facilities.

In connection with the transaction, Kosmos has received USD 200m of additional firm commitments to increase its reserves-based loan facility capacity.

Kosmos is a pure play deepwater oil and gas company with production, a pipeline of development opportunities and a balanced exploration portfolio along the Atlantic Margins.

Its assets include growing production offshore Ghana and Equatorial Guinea, a competitively positioned Tortue gas project in Mauritania and Senegal, and a sustainable exploration programme balanced between proven basins (Equatorial Guinea), emerging basins (Mauritania, Senegal and Suriname) and frontier basins (Cote d'Ivoire and Sao Tome and Principe).

Evercore Inc. and Goldman Sachs and Co. LLC acted as financial advisors to Kosmos.

Country: USA

Sector: Petroleum/Natural Gas/Coal

Target: Deep Gulf Energy

Buyer: Kosmos Energy

Vendor: First Reserve and other shareholders

Deal size in USD: 1.225bn

Type: Corporate Acquisition

Financing: Cash and Stock

Status: Closed

Buyer advisor: Evercore Inc , Goldman Sachs and Co ,


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Publication:M & A Navigator
Date:Sep 18, 2018
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