Delta Petroleum Jumps on Tracinda's Strategic Investment

| About: Par Petroleum (PARR)

Shares of Delta Petroleum Corp. (DPTR) jumped nearly 20% in pre-market trading Monday, after the company announced it would sell a 35% stake to Kirk Kerkorian's Tracinda Corp. The deal will have Kerkorian's private investment corporation inject $684 million into Delta for $19/share, a 23% premium over Friday's close, and allow Tracinda to nominate up to a third of Delta's board members. The new capital will give the oil and gas company the opportunity to accelerate expansion into Colorado and Utah. "The additional capital provides Delta the financial flexibility and wherewithal to grow the company to new level," said Delta CEO Roger Parker. The company added it will explore future acquisitions with the new funds as well. At last check, shares of Delta Petroleum traded up 17.3% to $18.20 in pre-market activity Monday.

Additional Reading: Kirk Kerkorian Bio

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