PXP is up a little over $1.00 since last week's Blog. Take the money and run? That looks like what PXP is doing.
PXP to Sell Oil Fields to Occidental
Monday August 7, 9:22 am ET
Plains Exploration to Sell Oil and Gas Fields to Occidental Petroleum for $865 Million
HOUSTON (AP) -- Plains Exploration & Production Co., an oil and gas company, on Monday sold some of its oil and gas assets to subsidiaries of Los Angeles-based Occidental Petroleum Corp. for $865 million in cash.
PXP said it is selling properties in California and Texas, including its interest in the Asphalto, Buena Vista and Mt. Poso fields in the San Joaquin Valley, the Sansinena field in the Los Angeles Basin, the Pakenham field in West Texas and other locations.
The companies differed on exactly how much oil the properties have.
Occidental said the properties will contribute about 56 million barrels of oil to its reserves. Plains offered a lower reserve estimate, of about 45 million barrels.
Similarly, Occidental said it expects "to substantially increase the current production rate of 8,900 net barrels of oil equivalent per day within the next few years," in a comment attributed in a release to Chairman and Chief Executive Ray R. Irani. Plains said the properties currently generate about 7,200 barrels per day.
The deal is expected to close on or before Sept. 30.
Plaiuns said it will use the proceeds for debt reduction and to repurchase stock.
Shares of Occidental rose $1.37 to $106.61 in premarket trading on INET electronic exchange, from their close Friday on the New York Stock Exchange at $105.24. Plains shares closed Friday at $44.26 on the NYSE.