Yes as far as I can tell they did keep the Eagleford Acerage, the biggest issues really are the Bond holders on the Forest Oil side IMHO, also continued consolidation this year, an increase in the price of oil and Nat Gas will help also...
Forest Oil and Sabine Oil & Gas merger will create $4.7B company [FST]
user-pic By Jonathan Schwarzberg on May 6, 2014 12:38 PM 0 0 0 From Claire Poole: The reverse merger of Forest Oil Corp. [FST] and First Reserve-backed Sabine Oil & Gas LLC will create a company with a combined equity value of $2.7 billion, a source close to the situation said, making Forest shareholders' 26.5% stake worth $715 million. Forest's market capitalization was $213 million at the close yesterday. Forest's equity value of $950 million along with its $752 million in debt as of March 31 gives it an enterprise value of $1.7 billion. Sabine's equity value of $1.8 billion along with its $1.23 billion in debt gives it an enterprise value of $3 billion. The new company's enterprise value amounts to $4.7 billion. Forest's stock is up 20% on the news.
The deal will create one of the industry's largest East Texas players with additional properties in the Eagle Ford, Granite Wash, Permian and Arkoma areas that could be developed or monetized, the companies said. Sabine shareholders will own 73.5% of the combined company, which will take the Sabine name.
Barclays Capital Inc.'s Greg Pipkin and Brad Hutchinson, Wells Fargo Securities LLC's Hugh Babowal, Jay Chernosky and Art Krasny and Tudor, Pickering, Holt & Co.'s Maynard Holt and Henry May advised Sabine. Vinson & Elkins LLP provided Sabine with legal counsel with a team led by Jeff Floyd and Lande Spottswood and including Doug McWilliams, Matt Pacey, Lauren Anderson and John Bell. Simpson Thacher & Bartlett LLP advised Sabine on financing matters, including Ed Tolley, David Azark, Robert Rabalais and Matt Einbinder. Gibson, Dunn & Crutcher LLP represented First Reserve, including Beau Stark, Jonathan Whalen, Jeff Henderson, Paul Issler and Lorna Wilson. Sabine's general counsel is Tim Yang.
J.P. Morgan Securities LLC's Laurence Whittemore advised Forest and Wachtell, Lipton, Rosen & Katz LLP's Mark Gordon and David Lam were its legal counsel. M&A Private Equity (Empty) Energy (Empty) (Empty) United States (Empty) (Empty) $ 1-10 Billion 0 0 0 Poole_Claire Categories: Market intelligence
News 
Market Data 
Discover 
AI
