Santa Fe To Acquire Snyder Oil
HOUSTON (AP) _ Santa Fe Energy Resources plans to acquire Snyder Oil Corp. for about $450 million in stock, creating an exploration and production company with a market value of $1.1 billion.
Under the deal, Houston-based Santa Fe would also assume $216 million in Snyder’s debt. The new company, Santa Fe Snyder Corp., would be based in Houston.
The combined operations will reduce costs by $20 million annually. The deal, which is subject to shareholder approval, is expected to close by July.
The merger is expected to result in up to 125 job cuts, said Rodney L. Waller, Snyder vice president and treasurer.
Snyder, based in Fort Worth, currently employs 300 people, including 75 in its Fort Worth office who either would be relocated or laid off, Waller said. Santa Fe has about 400 employees nationwide.
Santa Fe shareholders will own 60 percent of the outstanding shares.
Combined production for 1999 is estimated at 110,000 barrels a day, with 55 percent gas and 70 percent domestic.