GeoResources surges on buyout news
The deal allows Halcón Resources to expand its business to other parts of the US.
Under the terms of the agreement, Halcón Resources will acquire all outstanding shares of common stock from GeoResources. The deal allows Halcón to expand its oil and gas footprint to a larger swath of the U.S.
GeoResources shareholders will get $20 in cash and 1.932 shares of Halcón common stock for each share, representing consideration to GeoResources stockholders of $39.63 per share based on Halcón's closing price on April 25.
GeoResources is an independent company that buys and develops oil and gas reserves primarily in the southwest United States. Halcón is in a similar business, but is focused in Texas, Louisiana and Oklahoma.
The transaction will increase Halcón's estimated reserves by more than 150% to approximately 52.8 million barrels of oil equivalent, 69% of which are liquids. Halcón will also boost average net daily production by more than 170% to approximately 11,070 barrels of oil equivalent, based on fourth quarter 2011 production rates.
Do you buy or sell Halcón shares? Traders discuss the stock in the following video.
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Shares of GeoResources are up about 24% this year. Halcón Resources also traded higher on the session, closing at $10.20, up 9.68% for the day.
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