Each one in plain English, with the numbers worked through for a shareholder.
10 Sept 2012material agreement● NeutralMajor
On September 4 and 7, 2012 PXP agreed to buy Gulf of Mexico interests from BP for $5.55 billion and from Shell (Holstein Field) for $560 million, both in cash. PXP put down a $555 million deposit with BP and expects both deals to close November 30, 2012, subject to antitrust clearance. A bank commitment letter backs up to $5.0 billion of secured revolving and term loans plus up to $2.0 billion of unsecured bridge loans. The filing also gives 2013-2014 guidance, including 48-51 million BOE of sales volumes in 2013. This returns PXP to Gulf of Mexico assets, with a far larger commitment than the shallow-water properties it sold to McMoRan in 2010, and adds substantial debt.
PLAINS EXPLORATION & PRODUCTION CO shareholders approved the routine matters put to a vote at the company's annual meeting (director elections, auditor ratification, and the executive-pay advisory vote).
On April 27, 2012 PXP completed a $750 million offering of 6 1/8% Senior Notes due 2019, with net proceeds of about $737.5 million. The money is to repay revolver borrowings and for general purposes, including redeeming the $76.9 million of 7% 2017 Notes still outstanding after the earlier tender offer. Those notes are called for redemption on May 29, 2012 at 103.5% of principal plus accrued interest. This continues the 2011 effort to refinance older notes with newer ones.
S.A.C. Capital Advisors, L.P, S.A.C. Capital Advisors, Inc, S.A.C. Capital Associates, LLC, CR Intrinsic Investors, LLC, Sigma Capital Management, LLC, Steven A. Cohen reported a PLAINS EXPLORATION & PRODUCTION CO shareholding of 3,555,390 shares (2.50% of votes) in a periodic institutional filing.
19 Dec 2011asset acquisition disposition● NeutralMajor
On December 15, 2011 PXP completed the sale of all its Texas Panhandle working interests to Linn Energy, one of the two asset sales agreed November 3, 2011 as part of the $785M package. PXP received about $555 million in cash at closing, expects about $74 million more from future closings, and used the proceeds, net of about $6.2 million of costs, mainly to repay its revolving credit facility. The filing says these properties produced about 84 MMcfe/d in Q3 2011 and had 263 Bcfe of proved reserves at end-2010. The South Texas conventional gas sale is not covered here.
On December 8, 2011 PXP signed Amendment No. 4 to its credit agreement, keeping the $1.8 billion borrowing base unchanged despite the planned sale of its Texas Panhandle working interests and South Texas conventional gas properties for $785 million cash (agreements signed November 3, 2011). The next scheduled redetermination is on or before May 1, 2012.
PXP sold $1.0 billion of 6 3/4% Senior Notes due 2022 (completed November 21, 2011; net about $984 million) to repay revolver borrowings and for general purposes, including funding tender offers for its 2015 and 2017 notes. The filing also reports the EIG deal closed: the $450 million preferred offering closed November 17 and the deepwater assets were contributed to Plains Offshore Operations on November 18, leaving PXP with 80% and EIG 20% of the common equity. A new $300 million POOI credit agreement maturing November 18, 2016 is guaranteed by PXP, and the PXP credit facility was amended (Amendment No. 3) to allow this and raise the permitted note and equity repurchase limit from $1.0 billion to $1.6 billion.
2 Nov 2011capital raising announcement● NeutralMajor
On October 28, 2011 PXP agreed to put its Gulf of Mexico deepwater assets (including Lucius and Phobos) into a subsidiary, Plains Offshore Operations Inc., which would sell $450 million of 8% convertible preferred stock with warrants to EIG funds. PXP would keep 80% of the common equity and EIG 20%, with closing expected in Q4 2011. This is a financing and partial stake sale rather than the full sale of the deepwater assets that was being marketed since September 2010; the warrants cover up to 9,121,000 shares at $20.00.
PLAINS EXPLORATION & PRODUCTION CO shareholders approved the routine matters put to a vote at the company's annual meeting (director elections, auditor ratification, and the executive-pay advisory vote).
On May 4, 2011 PXP signed Amendment No. 2 to its credit agreement (the facility that closed August 3, 2010), extending maturity from August 3, 2015 to May 4, 2016 and lowering borrowing rates. The same filing furnished first-quarter 2011 results: revenue $430.3 million, net income $71.0 million, with the borrowing base raised from $1.45 billion to $1.8 billion (commitments unchanged at $1.4 billion) and $125 million drawn at March 31. It also says PXP is still evaluating financing options for its deepwater business, so the year-end 2010 sale target was not met.
