Boston, MA 03/12/2014 (wallstreetpr) – Energy XXI claims it has reached an agreement for the acquisition of EPL Oil &Gas Inc. (NYSE:EPL) in a deal thought to be worth $1.53 billion, the merger of the two companies will result in the largest publicly traded oil and gas producer in the Gulf of Mexico. The two entities will have the capacity of producing approximately 65,000 barrels a day once the merger is complete.
Energy XXI Limited (NASDAQ:EXXI) claims that the merger will result in the highest concentration for large mature oil fields, ever owned by a single operator over the Gulf. The terms of the agreement will require EPL shareholders to choose whether to receive $39 per share held in cash or a combination of $25.35 in cash and 0.584 of Energy XXI shares.
EPL Oil &Gas Rating In The Market
TheStreet currently rates EPL Oil &Gas stock as a “Buy” with a score of B- as the company strengths continue to outweigh weaknesses. The company has been reporting impressive revenue growth over the past quarters as well as having reasonable valuation levels. EPL Oil &Gas currently boosts of good cash flow levels with its stock having impressively grown in the market over the past year as well as commanding good profit margins.
EPL Oil &Gas revenue has impressively grown in the market outpacing that of the industry average which stands at 7.7%. The company’s revenue has grown by 2.7% in the recent quarter as compared to a similar quarter a year ago. The growth in revenue has on the other hand not trickled down the company’s bottom line as the company’s earnings per share seem to be on a decline.
EPL Oil &Gas net operating cash flow has increased by 52.96% over the past year to a high of $78.40 million compared to that of a similar quarter the prior year. The oil and gas company net operating cash flow growth has surpassed that of the industry average that comes in at 23.43%.
The company stock is currently trading at higher margins compared to the same period a year ago although there has been a declining pattern in terms of earnings per share. The company weakness as of the moment can be seen on declining earnings per share, a trend that has been ongoing for the past year.
