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Gas industry

Zapata Corporation Announces Sale of Natural Gas Reserves and Stock Repurchase Plan

Strategic Insights

— 1 min read

The Zapata Corporation, a leading energy company, has completed the sale of its natural gas reserves to Hunt Oil Company. As part of its strategic shift, Zapata's board of directors has authorized the repurchase of up to 7.5 million shares of the company's common stock. This move comes as Zapata aims to dispose of its energy assets and focus on acquiring food-related businesses. In a recent development, Zapata has entered into a letter of intent to acquire a 31% stake in Envirodyne Industries, a leading player in the food packaging and supplies industry.

Key Takeaways:

  • Zapata Corporation sold its natural gas reserves associated with federal offshore block Eugene Island 76 in the Gulf of Mexico to Hunt Oil Company.
  • The sale is part of Zapata's effort to dispose of its energy assets and focus on other business areas.
  • Zapata's board of directors has authorized the repurchase of up to 7.5 million shares of the company's common stock, approximately 25.4% of its outstanding shares.
  • As of June 20, 1995, Zapata had 29.5 million shares of common stock outstanding.
  • Envirodyne Industries, a target for potential acquisition, reported $600 million in sales in 1994 and is a leader in food packaging and supplies.
  • Zapata is evaluating the purchase of additional Envirodyne shares or proposing a merger with or acquisition of the company.
  • The company is also exploring other possible acquisitions in the food-related industry.

Statistics:

  • Zapata had approximately 29.5 million shares of common stock outstanding as of June 20, 1995.
  • The company's board of directors has authorized the repurchase of up to 7.5 million shares, representing approximately 25.4% of outstanding shares.
  • Envirodyne Industries reported $600 million in sales for 1994.
  • The sale of natural gas reserves is associated with federal offshore block Eugene Island 76 in the Gulf of Mexico.

Sources:

  • Business Wire, June 21, 1995.
  • Zapata Corporation, press release, June 21, 1995.

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