Kosmos enters the Gulf of Mexico with acquisition

Kosmos Energy has entered into an agreement to acquire Deep Gulf Energy from First Reserve and other shareholders for a total consideration of $1.225 billion.

Offshore staff

DALLASKosmos Energy has entered into an agreement to acquire Deep Gulf Energy from First Reserve and other shareholders for a total consideration of $1.225 billion, subject to certain adjustments.

Under the terms of the transaction, the total consideration of $1.225 billion comprised of $925 million in cash and $300 million in Kosmos common shares issued to First Reserve, management, and other DGE shareholders.

The acquisition includes Deep Gulf Energy LP, Deep Gulf Energy II, LLC and Deep Gulf Energy III, LLC.

It is expected to close around the end of 3Q 2018, subject to receipt of regulatory approval and the satisfaction of customary closing conditions.

Andrew G. Inglis, chairman and CEO, said: “… With many competitors leaving the Gulf of Mexico to chase onshore shale plays, a huge opportunity has opened in the basin. The best deepwater assets can compete with the best of shale, and now is a good time to enter theGulf of Mexico.

“This highly complementary transaction is immediately accretive – delivering sustainable production and free cash flow growth and enabling dividend payments to begin in the first quarter of 2019.”

08/06/2018

More in Regional Reports