cima - I don't really follow Ocean at all however do know they were subject of some speculation this past summer.
Quick google search tossed up the stuff pasted below from back in July 2001. Not sure if everything still applies.....
Ocean Energy May be Next Takeover Target
Ocean Energy has recently emerged as a buyout target, according to
Business Week's Inside Wall Street article. Ocean is an attractive target
because of its exploration inventory. Ocean Energy is expected to drill
about 30 deepwater wells this year. Its properties include interests in 4
million acres in West Africa. Shell, Kerr-McGee and Anadarko are potential
buyers.
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The article in Business Week is at:
businessweek.com:/print/magazine/content/01_30/b3742123.htm?mainwindow
JULY 23, 2001
INSIDE WALL STREET
Ocean Energy Next?
Consolidation rages in the oil patch: In the wake of Amerada Hess' just-announced acquisition of Triton Energy, who's next? Speculation has thickened that one target could be Ocean Energy (OEI ), the seventh-largest U.S. oil-and-gas exploration company in terms of production. Ocean is no stranger to dealmaking: It merged into Seagull Energy on Mar. 30, 1999--retaining the name Ocean Energy. Whispers are that Royal Dutch Petroleum, Kerr-McGee, and Anadarko Petroleum have looked into Ocean. With Amerada paying a 51% premium for Triton, some pros figure Ocean, now at 17 a share, is worth 25 to 30 a share in a buyout.
Ocean is an "attractive target because of its exploration inventory--superior to its peers--and it's one of the fastest-growing producers among its large-cap rivals," says Shannon Nome of J.P. Morgan Chase, who rates the stock a buy. Ocean has been increasing its already large inventory of "high-potential worldwide deepwater projects," she says. Nome expects Ocean to drill 27 to 30 deepwater wells this year. It holds interests in 4 million acres in West Africa, plus recently acquired acreage in Brazil. Its explorations--in such areas as Guinea, Angola, and Gulf of Mexico--could result in big discoveries, says Nome.
Royal Dutch owns 60% of Royal Dutch/Shell Group, the world's second-largest publicly traded oil company. Kerr-McGee recently formed a pact with Ocean for exploration in the Gulf of Mexico. Anadarko is also an active worldwide oil-and-gas explorer and producer.
Ellen Hannan of Bear Stearns says Ocean's high-quality properties have "distinguished it from its peers." She sees Ocean earning $1.81 a share in 2001, up from 2000's $1.30, with cash flow of $4.84, vs. 2000's $3.71. Ocean, as well as Royal Dutch, Kerr-McGee, and Anadarko, declined comment.
By Gene G. Marcial |
