Richard Zeits • 12 Comments
Oct. 6, 2014, 6:33 PM
- Forest Oil (NYSE:FST) discloses it had agreed to acquire certain Texas oil and gas properties from BP for $20M.
- Earlier, FST and Sabine Oil & Gas attempted to reassure investors that the companies still expect to complete their proposed merger before the end of the year, but FST shares fell 5.5% anyway.
- FST scheduled a Nov. 20 special meeting for shareholders to vote on the proposed stock swap that would leave them with a 26.5% share of the combined companies.
Jul. 10, 2014, 9:41 AM
- Forest Oil (FST -2.1%) and Sabine Oil & Gas revise the terms of their merger agreement so that Sabine will now be acquired by FST, rather than FST merging with a Sabine unit.
- FST also adopts a shareholder rights plan, with a 5% trigger on shareholders who have shorted the company's debt; FST says it is concerned that investors with short positions in its debt securities could attempt to negatively influence or manipulate the merger vote in an effort to drive down debt prices.
- The revised structure does not alter the economic terms of the all-stock transaction; when the deal is completed, current FST shareholders will own ~26.5% of the combined business, the same as under the original contract.
May 6, 2014, 8:49 AM
- Forest Oil (FST) +40.2% premarket after agreeing to merge with Sabine Oil & Gas in an all-stock transaction that will create one of the industry's largest east Texas players.
- The combined company will have estimated proved reserves of 1.5T cfe (71% gas) and estimated daily production of 345M cfe (65% gas) for 2014.
- Sabine unitholders will own ~73.5% of the new combined entity and FST shareholders will own ~26.5%; the combined entity will be named Sabine Oil & Gas Corp. and be run by Sabine's current executive management team.
- For FST, the merger is more like a rescue, as shares have dropped 50% YTD.
Aug. 20, 2012, 1:35 PM
According to industry insiders, Forest Oil (FST -2.9%) has been approached by multiple potential buyers in recent months, but the company's board didn't express any real interest in selling the company. It should be noted however, that the approaches were made prior to the firing of CEO H. Craig Clark in June and since his departure. The stock spiked on Friday over takeover speculation.| Aug. 20, 2012, 1:35 PM
Aug. 17, 2012, 3:18 PM
Forest Oil's (FST +4.4%) spike in the past hour is attributed to speculation of potential takeover interest. The exploration and production company has been [[plagued]] by a string of earnings and revenue misses, plus defections of top management.| Aug. 17, 2012, 3:18 PM | 1 Comment
Jul. 15, 2011, 8:58 AM
Oil-and-gas takes the pole among premarket gainers following Petrohawk's (HK +63%) $12.1B bid from BHP Billiton (BHP -1.6%) as it moves deeper into the U.S. shale. The deal values HK at 50% higher than 30-day prices. LNG +6.2%. CHK +5.6%. FST +4.7%. SD +4.2%. XCO +3.8%. EOG +3.7%. HES +2.3%.| Jul. 15, 2011, 8:58 AM | 1 Comment