This should be good for Houston Texas Real Estate - Houston-based Apache Corp. ...

Apache to buy Mariner for $2.7 billion.

Houston-based Apache Corp. said it will buy deepsea oil and gas explorer Mariner Energy for $2.7 billion in an effort to extend its operations into the deepwater Gulf of Mexico.

This is the second big acquisition of Apache in the past week. On April 12 the company said it would buy Devon Energy's shallow water Gulf of Mexico assets for $1.05 billion.

The stock and cash deal will value Mariner's shares at $26.22 each, a 45 percent premium over its Wednesday close. Mariner shareholders would get 0.17 of an Apache share and $7.80 for each Mariner share.

The company also said it take on $1.2 billion in Mariner's debt. It is expected to close by the third quarter.

"This is a strategic step and a natural extension into the deepwater Gulf for Apache," said Apache Chairman and Chief Executive Officer Steven Farris in a statement. "Mariner provides an exciting new platform for growth in the deepwater and complements our strengths in the Gulf Shelf and the Permian Basin. Based on our experience working with the Mariner team, we also believe the two companies will make an excellent cultural fit."

Posted by Tom Fowler at April 15, 2010 07:03 AM
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