Energy XXI agreed to acquire EPL Oil & Gas for $2.3 billion — a move the two firms said would create the largest publicly traded independent producer on the Gulf of Mexico shelf. When the merger is complete, Energy XXI will have production of 65,000 barrels of oil equivalent per day and an enterprise value of $6 billion. Energy XXI Executive Vice President for Exploration and Production Ben Marchive said the combined company would operate 10 oil fields on the Gulf of Mexico shelf with cumulative production exceeding 80 million barrels of oil each.
“EPL’s assets and operations closely resemble our own, predominantly oil, with some of the highest margins in the industry and extraordinary opportunities for reserves and production growth through development and exploration activities,” Energy XXI Chairman and CEO John Schiller said in a press release. “Energy XXI will be the only publicly traded pure play on the Gulf of Mexico shelf, with the highest concentration of large, mature oil fields ever owned by a single shelf operator.”
Schiller will remain chairman and CEO of the combined company and its headquarters will be in Houston. One of EPL’s board members will join Energy XXI’s board of directors.
