Each one in plain English, with the numbers worked through for a shareholder.
9 Oct 2012asset acquisition disposition● Neutral
On October 2, 2012, McMoRan sold three Gulf of Mexico shelf properties in the West Delta and Mississippi Canyon areas to Renaissance Offshore for $28.0 million cash plus assumption of related abandonment obligations. The assets were about 1% of Q2 2012 production and 3% of reserves; a further $36.8 million sale of Eugene Island properties to Arena Energy is expected to close in Q4 2012, and McMoRan expects net gains of about $40 million from the two deals combined.
On September 13, 2012, McMoRan again extended its 5¼% convertible notes, exchanging $67,832,000 of the notes due 2012 for new notes due October 6, 2013 at the same $16.575 conversion price, and said it intends to repay the remaining $345,000 at the October 6, 2012 maturity. The press release says about 162 million common shares are outstanding, or about 224 million if all convertibles and preferred stock were converted.
MCMORAN EXPLORATION CO /DE/ shareholders approved the routine matters put to a vote at the company's annual meeting (director elections, auditor ratification, and the executive-pay advisory vote).
On October 6, 2011, McMoRan swapped $68,177,000 of its 5¼% convertible notes due Oct 2011 for new 5¼% convertible notes due October 6, 2012, and repaid the remaining $6,543,000 in cash at maturity. The new notes keep the $16.575 conversion price, so this pushes the maturity back a year and resolves the open 2011 notes thread.
On September 8, 2011, McMoRan's subsidiary bought out Whitney Exploration's interests under a 2009 exploration agreement, including a 2.97% working interest in Davy Jones and a 2% working interest in Blackbeard East, for $10 million cash and 2,835,158 McMoRan shares, and assumed Whitney's obligations. McMoRan agreed to register the shares for resale within 30 days; this increases McMoRan's share of those prospects and adds shares to the count.
On June 30, 2011, McMoRan's subsidiary McMoRan Oil & Gas signed a new five-year, $150 million senior secured revolving credit facility with JPMorgan as agent, expandable by $150 million. It replaces the August 2007 credit agreement that was set to expire August 6, 2012, and matures June 30, 2016, unless the 11.875% senior notes due 2014 have not been redeemed or refinanced by August 16, 2014, in which case it matures on that date.
MCMORAN EXPLORATION CO /DE/ shareholders approved the routine matters put to a vote at the company's annual meeting (director elections, auditor ratification, and the executive-pay advisory vote).
This amendment adds the financial statements for the acquired PXP Gulf of Mexico shelf assets (revenues and direct operating expenses for 2007-2009 and nine months of 2010) and pro forma combined statements for McMoRan, which were permitted to be filed after the December 2010 closing. The text of the filing itself gives no figures; the numbers are in the attached exhibits, which are not reproduced here.
