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Petroleum

Ocean Energy Completes Sale of ENSTAR to SEMCO, Generating $290 Million in Proceeds

Strategic Insights

— 1 min read

Ocean Energy, Inc. has finalized the sale of ENSTAR Natural Gas Company and the Alaska Pipeline Company to SEMCO ENERGY, Inc. for approximately $290 million in total proceeds. The sale will be used to reduce Ocean Energy's outstanding indebtedness and support other corporate purposes. This transaction marks a significant step in the company's restructuring efforts, allowing it to aggressively pursue growth opportunities in various regions.

Key Takeaways:

  • Ocean Energy, Inc. has sold ENSTAR Natural Gas Company and the Alaska Pipeline Company to SEMCO ENERGY, Inc. for $290 million in cash proceeds.
  • The sale will be used to pay down Ocean Energy's debt under its revolving credit facilities and support other business initiatives.
  • Chase Securities, Inc. acted as advisor to Ocean Energy in the transaction.
  • James T. Hackett, Ocean Energy's President and CEO, expressed his satisfaction with the completion of the sale, highlighting the company's ability to complete its restructuring ahead of expectations.
  • Ocean Energy is committed to pursuing its growth opportunities in various regions, including North America and internationally.
  • The company is engaged in exploration and production activities in the Gulf of Mexico, Permian Basin, Midcontinent, Rocky Mountain regions, as well as internationally in West Africa, Egypt, Russia, and Indonesia.

Statistics:

  • Total proceeds from the sale: $290 million
  • Region-specific areas of operation for Ocean Energy, Inc.:

+ North America: shelf and deepwater areas of the Gulf of Mexico, Permian Basin, Midcontinent, and Rocky Mountain regions

+ Internationally: West Africa, Egypt, Russia, and Indonesia

  • Ocean Energy's business focus: exploration, development, production, and acquisition of crude oil and natural gas
  • Contact information for Investor Relations: (713) 265-6161 or mail requests to 1001 Fannin, Suite 1600, Houston, Texas 77002

Sources:

  • Ocean Energy, Inc. press release, Nov. 2 (no date provided)
  • Chase Securities, Inc. (as advisor to Ocean Energy in the transaction)

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