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Mulva: ConocoPhillips completes acquisition of Burlington Resources
ConocoPhillips said March 31 that it has completed its acquisition of Burlington Resources following approval by Burlington’s shareholders March 30.
“Today, ConocoPhillips has expanded its portfolio of high-quality, low-risk, long-life gas reserves, and enhanced its position as a leading producer and marketer of natural gas in North America,” Jim Mulva, chairman and chief executive officer said in a statement. “Overall, our North American gas supply position is strengthened both in the near term, through projects involving conventional and unconventional resources, and in the long term through LNG and Arctic gas projects.”
With the completion of this transaction, using Dec. 31, 2005, data, the company said its net proved reserves are expected to increase to 11.5 billion barrels of oil equivalent, including the company’s interest in LUKOIL but excluding Syncrude.
Mulva: debt to be reduced “We anticipate immediate and future cash generation from this transaction that will aid in the reduction of debt incurred for the acquisition and go toward the redeployment of cash into strategic areas of growth,” said Mulva. “ConocoPhillips also has gained well-recognized technical expertise that, together with our existing upstream capabilities, will create a superior organization to capitalize on the expanded asset base.”
As previously announced, Randy L. Limbacher is now executive vice president responsible for the company’s North and South America exploration and production operations, reporting to Mulva. William B. Berry is executive vice president responsible for ConocoPhillips’ E&P operations in Europe, Asia, Africa and the Middle East, as well as E&P shared services functions, also reporting to Mulva.
As a result of the merger, each share of Burlington Resources common stock has been converted into the right to receive $46.50 in cash and 0.7214 shares of ConocoPhillips common stock.
—Petroleum News
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