Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, April 16, 2010

Article Excerpt

APACHE CORP., $105.44, New York symbol APA, has made two major purchases that will expand its offshore oil-drilling operations in the Gulf of Mexico. This week, the company agreed to buy Mariner Energy Inc. (New York symbol ME) for $2.7 billion in cash and stock. Mariner has reserves of 181 million barrels of oil equivalent (including natural gas). Besides offshore fields in the Gulf of Mexico, Mariner has onshore properties in Texas and New Mexico. Apache will also assume $1.2 billion of Mariner’s debt. The deal should close in the third quarter of 2010. Apache is also buying Devon Energy Corp.’s (New York symbol DVN) oil and gas reserves on the Gulf of Mexico Shelf for $1.05 billion. Devon is a recommendation of our Stock Pickers Digest newsletter. These fields hold 83 million barrels of oil equivalent. Apache aims to complete this purchase by the end of June. Together, these new assets will increase Apache’s proven reserves of 2.4 billion barrels of oil…