Leslie Turk

Stone buying Houston company for $1.8 billion

by Leslie Turk

In yet another sign that it is continuing to bounce back from its legal and financial troubles, Lafayette-based Stone Energy is buying a Houston energy company, Bois d'Arc Energy Inc., in a deal valued at approximately $1.8 billion.

The combined entity be one of the largest Gulf of Mexico-focused operating companies, with a solid production base, strong portfolio for continued development of proved and probable reserves, and an extensive inventory of exploration opportunities.

Under the terms of the agreement, Bois d'Arc Energy shareholders will  receive $13.65 in cash and 0.165 shares of Stone common stock for each share of Bois d'Arc common stock.

An independent oil and gas company, Stone Energy earned $181.4 million in 2007, compared with a loss of $254.2 million in 2006 (during the fourth quarter of 2006, Stone took a $330.5 million accounting writedown).

While Stone's stock price dropped to the high 20 range in early 2007, it has since been on the rebound -- its recent high closing of $68.74 occurring Monday.