Murphy Exploration & Production has closed the strategic deep water Gulf of Mexico acquisition from LLOG Exploration Offshore and LLOG Bluewater Holdings.
After taking into account customary closing adjustments, Murphy’s total cash consideration paid was $1.227 billion, which was funded primarily through the company’s $1.6 billion revolver and other sources of liquidity.
According to a related 8-K filing, the company amended its credit facility with JPMorgan Chase as administrative agent. The company entered into a $500 million term loan credit facility that will expire on December 2, 2019. The covenants within the new term credit facility are substantially consistent with those in the company’s revolving credit facility, and borrowings under the new term credit facility bear interest at comparable rates to those incurred under the revolving credit facility. The proceeds of the new term credit facility were used to partially fund the acquisition.
“We are excited to close another accretive Gulf of Mexico transaction as we continue to transform the company. After our third-party reserve engineers1 audited these newly acquired assets, we were able to increase the proved reserve volumes by 13 percent, to 73 Mmboe which further enhances the attractive acquisition metrics. Our newly expanded Gulf of Mexico portfolio is consistent with Murphy’s long-term vision of increasing high-margin, oil-weighted production in an area where we have a long history of operational success,” stated Roger W. Jenkins, president and CEO._x000D_
Murphy Oil Corporation is a global independent oil and natural gas exploration and production company.
