Bullseye today- CRED-Credo Petroleum-First takeout this year.. :+ )
Credo Petroleum gets $146M buyout bid
Denver Business Journal by Mark Harden, New Media Editor Date: Monday, June 4, 2012, 8:32am MDT - Last Modified: Monday, June 4, 2012, 8:37am MDT
Related: Energy, Mergers and Acquisitions, Oil & gas
Forestar plans to acquire all outstanding shares of the Denver-headquartered independent oil and gas company's common stock for $14.50 a share.
"We believe this transaction captures the value we have created since we began transitioning Credo from natural gas to oil about four years ago," Credo Chairman James Huffman said in a statement. "Forestar is a larger enterprise with significant oil and gas assets, and it is well positioned to accelerate the transition."
Jim DeCosmo, Forestar's president and CEO, said the acquisition "is expected to more than double Forestar's existing oil and gas production and proven reserves, provide Forestar with operating flexibility, and create a solid platform for continued growth."
The deal, subject to approval by Credo's shareholders, is expected to close in the second half of this year.
Credo (Nasdaq: CRED) operates primarily in North Dakota, Kansas, Nebraska, the Texas Panhandle and Oklahoma.
Forestar (NYSE: FOR) is a company with oil and gas, real estate and wood fiber segments and operates 594,000 net acres of oil and gas interests mostly in Texas, Louisiana, Alabama and Georgia.
The deal comes a few months after Marlis Smith Jr. stepped down as Credo's CEO after two years in the post, saying he wanted to devote more time to his personal businesses.
COO Michael Davis has been serving as acting CEO since Smith's departure; Huffman was the company's CEO for 30 years and co-founded Credo in 1978.
In its most recent fiscal year, which ended Oct. 31, Credo reported net income of $3.45 million, or 34 cents a share, on revenue of $16.8 million, versus the previous year's net income of $2.2 million, or 22 cents a share, on revenue of $11.6 million.
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