Cox Oil To Acquire Energy XXI Gulf Coast For $322 Million

Cox Oil Offshore LLC agreed to acquire Energy XXI Gulf Coast Inc. (NASDAQ: EGC) in a deal set to more than double the private Dallas-based operator’s production in the Gulf of Mexico (GoM), Energy XXI said June 18.

As part of a definitive agreement, a Cox Oil affiliate will purchase all of the outstanding shares of Houston-based Energy XXI’s common stock for $9.10 per share. The roughly $322 million cash transaction represents a 21% premium to Energy XXI’s closing share price on June 15, the company said.

As a result of the new agreement, Energy XXI will terminate the partnership with Orinoco Natural Resources LLC announced May 10. The deal, which included the sale of Energy XXI’s noncore asset portfolio in the GoM, was estimated to be worth more than $125 million by BMO Capital Markets analysts.