ConocoPhillips Finalizes Burlington Merger
ConocoPhillips announced that it has completed its acquisition of Burlington Resources following approval by Burlington's shareholders on Thursday.
"Today, ConocoPhillips has expanded its portfolio of high-quality, low-risk, long-life gas reserves, and enhanced its position as a leading producer and marketer of natural gas in North America," said Jim Mulva, chairman and chief executive officer. "Overall, our North American gas supply position is strengthened both in the near term, through projects involving conventional and unconventional resources, and in the long term through LNG and Arctic gas projects."
With the completion of this transaction, using Dec. 31, 2005, data, ConocoPhillips' net proved reserves are expected to increase to 11.5 billion barrels of oil equivalent (BOE), including the company’s interest in LUKOIL but excluding Syncrude.
"We anticipate immediate and future cash generation from this transaction that will aid in the reduction of debt incurred for the acquisition and go toward the redeployment of cash into strategic areas of growth," said Mulva. "ConocoPhillips also has gained well-recognized technical expertise that, together with our existing upstream capabilities, will create a superior organization to capitalize on the expanded asset base."
Randy L. Limbacher, Burlington's executive vice president and chief operating officer at the time of the merger, is now ConocoPhillips' executive vice president responsible for the company's North and South America exploration and production operations. William B. Berry is executive vice president responsible for ConocoPhillips' E&P operations in Europe, Asia, Africa, and the Middle East, as well as E&P shared services functions. Both Limbacher and Berry report to Mulva.
As a result of the merger, each share of Burlington Resources common stock has been converted into the right to receive $46.50 in cash and 0.7214 shares of ConocoPhillips common stock. Information regarding exchange of share certificates will be sent to former Burlington Resources shareholders.
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