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Petroleum

Crystal Oil Company Announces Sale of U.S. Oil and Gas Properties to Apache Corp.

Strategic Insights

— 1 min read

Crystal Oil Company, an American energy company listed on the American Stock Exchange (AMEX), has completed the sale of substantially all its U.S. oil and gas properties to Apache Corp. for approximately $97 million in cash. This deal marks a significant milestone for Crystal Oil, which will now have approximately $82 million in liquid assets to pursue new opportunities and acquisitions. The company has also prepaid substantially all of its outstanding bank debt and redeemed its $11.3 million outstanding Non-Interest Bearing Convertible Subordinated Notes due 1997.

Key Takeaways:

  • Crystal Oil Company has sold substantially all its U.S. oil and gas properties to Apache Corp. for approximately $97 million in cash, in addition to potential post-closing payments of $1 million to $2 million.
  • The company has received approximately $3.6 million from the sale of excluded oil and gas properties and prepaid substantially all of its outstanding bank debt.
  • Crystal Oil will retain various assets from the Apache sale, including its interest in its Russian joint venture, exploration prospects, and other properties not associated with the sold properties.
  • The company plans to review new opportunities for the use of its available cash and maintain approximately $82 million in liquid assets.
  • The redemption of $11.3 million outstanding Non-Interest Bearing Convertible Subordinated Notes due 1997 will result in an approximate $3.8 million charge in the fourth quarter for early extinguishment of debt.
  • Joe N. Averett, Jr., president of Crystal Oil, stated that the company is effectively debt-free and intends to pursue new opportunities and acquisitions.

Statistics:

  • $97 million: Cash consideration for the sale of substantially all U.S. oil and gas properties.
  • $1 million to $2 million: Potential post-closing payments from Apache Corp.
  • $3.6 million: Proceeds from the sale of excluded oil and gas properties.
  • $11.3 million: Outstanding Non-Interest Bearing Convertible Subordinated Notes redeemed on February 28, 1995.
  • $82 million: Approximate liquid assets available for Crystal Oil to pursue new opportunities and acquisitions.
  • 1995: Year in which Crystal Oil plans to review new opportunities for the use of its available cash and pursue new acquisitions.

Sources:

  • Crystal Oil Co. press release, December 30, 1994.

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