History
Maynard Oil, a Dallas Permian Basin producer built through bank-funded well purchases, sold itself for $17.00 a share in cash to Plantation Petroleum in 2002.
1995-1996: Buying and trimming
Maynard Oil Co, a Dallas company incorporated in 1971 and led by founder James G. Maynard, grew by buying producing wells. In April 1995 it closed the purchase of interests in about 200 producing wells across seven West Texas counties from Pennzoil Exploration & Production Company for $10,500,000, paid with $1,000,000 in cash and a $9,500,000 Bank One, Texas secured loan.
A second deal followed in January 1996: about 250 producing wells in the Garza Field in Garza County, Texas, bought from Energy Development Corporation for $18,750,000. It was funded by $5,750,000 in cash and a $13,000,000 Bank One loan, taking total bank debt to $26.1 million.
During 1996 the company also sold interests in about 130 wells in Texas and Oklahoma, in three transactions, for combined cash of $8,043,657. The record describes this as a deliberate tidying of the portfolio, not a distress sale.
1997-1999: Oil price slump and a buying spree
The record is quiet for 1997 and 1998 until the annual report for 1998. The collapse in oil prices that year pushed Maynard to a net loss of $7,816,000 (-$1.60 a share) on revenue of $16,166,000, including an $8,754,846 charge for writing down the value of its proved oil and gas properties.
The company kept buying anyway. In August 1999 it paid $10,400,000 in cash from its own funds for interests in 15 producing wells in Hardeman, Webb and Duval Counties, Texas, bought at a Houston auction from Phillips Petroleum Company. In November 1999 it closed the purchase of about 170 producing properties in southeastern New Mexico and West Texas from Questar Exploration and Production Company for $32,000,000, funded entirely by a Bank One loan.
2000-2001: Boom year and a decision to sell
2000 was a banner year. Net income more than tripled to $14,103,000 ($2.89 a share) on revenue of $52,739,000, as crude oil prices spiked through the year.
In July 2001 Maynard said it was exploring strategic alternatives, including a merger or sale of the company, and hired William Blair & Company as financial advisor and McDermott, Will & Emery as legal counsel. Its latest records also show interests added in the Tex-Mex Field in Gaines County, Texas, in 2001, and 49 wells drilled that year.
2002: Sold to Plantation Petroleum
In early April 2002 the company reported its fourth-quarter and year-end 2001 results and said it was continuing to pursue strategic alternatives. On April 25 it signed a merger agreement with Plantation Petroleum Holdings, LLC and its acquisition subsidiary, Plantation Petroleum Acquisition Corp. Each of the 4,880,368 shares would be cashed out at $17.00, about $83 million in total. Maynard's board unanimously recommended the deal, and holders of about 56% of the stock had already agreed to vote in favor.
A draft proxy statement followed in May and the final one on June 26, calling a special stockholder meeting for July 17, 2002. Approval needed a majority of the outstanding shares, and shareholders were told they would not receive Plantation shares.
On July 17, 2002, Maynard filed to deregister, reporting a single holder of record. That confirmed the merger had closed and that all public shareholders had been cashed out at $17.00 a share.
Written from the 14 story beats below (1995 to 17 July 2002), which come from the company's own announcements and filings.