Cox Oil, a Dallas-based offshore oil company focused on Gulf of Mexico developments, has agreed to buy Houston-based E&P firm Energy XXI Gulf Coast (EGC) for $322m.
EGC is also involved in Gulf of Mexico offshore projects but it also has interests onshore in Louisiana and Texas.
The price is $9.10 per fully diluted share in cash, a 21% premium on Friday’s closing price. It was approved unanimously by EGC’s board of directors. They had evaluated several other offers before settling on Cox’s.
EGC suffered losses of $33m in the first quarter of the year.
Cox currently produces about 35,000 barrels of oil equivalent (boe) per day and EGC is at about 26,000 boe.
Closure of the deal is dependent on customary conditions including getting approval from EGC’s stockholders and from regulators but should be complete by September 30.