Encore Acquisition Company (EAC, Financial) filed Quarterly Report for the period ended 2009-09-30.
Encore is an organized rapidly growing independent energy companyengaged in the acquisition development and exploitation of North American oil and natural gas reserves. Its oil and natural gas reserves are concentrated in fields located in the Williston Basin of Montana and North Dakota the Permian Basin of Texas and New Mexico the Anadarko Basin of Oklahoma and the Powder River Basin of Montana. Encore Acquisition Company has a market cap of $2.06 billion; its shares were traded at around $37.07 with a P/E ratio of 38.22 and P/S ratio of 1.81. Encore Acquisition Company had an annual average earning growth of 21.3% over the past 5 years.
In July 2009, ENP issued 9,430,000 common units under its shelf registration statement at a price to the public of $14.30 per common unit. ENP used the net proceeds of approximately $129.2 million, after deducting the underwriters discounts and commissions of $5.4 million, in the aggregate, and offering costs of $0.2 million, to fund a portion of the purchase price of the Rockies and Permian Basin Assets.
In May 2009, ENP issued 2,760,000 common units under its shelf registration statement at a price to the public of $15.60 per common unit. ENP used the net proceeds of approximately $40.9 million, after deducting the underwriters discounts and commissions of $1.9 million, in the aggregate, and offering costs of approximately $0.2 million, to fund the acquisition of certain natural gas producing properties in the Vinegarone Field in Val Verde County, Texas (the Vinegarone Assets) from an independent energy company for approximately $27.5 million, and a portion of the purchase price of the Williston Basin Assets.
During the three and nine months ended September 30, 2008, ENP recognized non-cash unit-based compensation expense related to management incentive units of $1.1 million and $3.2 million, respectively, which is included in General and administrative expense in the accompanying Consolidated Statements of Operations. There have been no additional issuances of management incentive units.
During the three and nine months ended September 30, 2009, ENP paid cash distributions of approximately $23.5 million and $57.1 million, respectively, of which $11.0 million and $32.4 million, respectively, was paid to EAC and its subsidiaries and had no impact on EACs consolidated cash. During the three and nine months ended September 30, 2008, ENP paid cash distributions of approximately $23.1 million and $52.3 million, respectively, of which $14.7 million and $32.7 million, respectively, was paid to EAC and its subsidiaries and had no impact on EACs consolidated cash.
During the three and nine months ended September 30, 2008, ENP paid cash distributions of approximately $1.2 million and $2.4 million, respectively, to certain executive officers of GP LLC, who serve in the same capacities for EAC, based on their ownership of management incentive units.
Read the The complete ReportEAC is in the portfolios of Ron Baron of Baron Funds, John Keeley of Keeley Fund Management.
Encore is an organized rapidly growing independent energy companyengaged in the acquisition development and exploitation of North American oil and natural gas reserves. Its oil and natural gas reserves are concentrated in fields located in the Williston Basin of Montana and North Dakota the Permian Basin of Texas and New Mexico the Anadarko Basin of Oklahoma and the Powder River Basin of Montana. Encore Acquisition Company has a market cap of $2.06 billion; its shares were traded at around $37.07 with a P/E ratio of 38.22 and P/S ratio of 1.81. Encore Acquisition Company had an annual average earning growth of 21.3% over the past 5 years.
Highlight of Business Operations:
Encore Operating initially received an administrative fee of $1.75 per BOE of ENPs production for such services. From April 1, 2008 to March 31, 2009, the administration fee was $1.88 per BOE of ENPs production. Effective April 1, 2009, the administrative fee increased to $2.02 per BOE of ENPs production. ENP also reimburses Encore Operating for actual third-party expenses incurred on ENPs behalf. Encore Operating has substantial discretion in determining which third-party expenses to incur on ENPs behalf. In addition, Encore Operating is entitled to retain any COPAS overhead charges associated with drilling and operating wells that would otherwise be paid by non-operating interest owners to the operator.In July 2009, ENP issued 9,430,000 common units under its shelf registration statement at a price to the public of $14.30 per common unit. ENP used the net proceeds of approximately $129.2 million, after deducting the underwriters discounts and commissions of $5.4 million, in the aggregate, and offering costs of $0.2 million, to fund a portion of the purchase price of the Rockies and Permian Basin Assets.
In May 2009, ENP issued 2,760,000 common units under its shelf registration statement at a price to the public of $15.60 per common unit. ENP used the net proceeds of approximately $40.9 million, after deducting the underwriters discounts and commissions of $1.9 million, in the aggregate, and offering costs of approximately $0.2 million, to fund the acquisition of certain natural gas producing properties in the Vinegarone Field in Val Verde County, Texas (the Vinegarone Assets) from an independent energy company for approximately $27.5 million, and a portion of the purchase price of the Williston Basin Assets.
During the three and nine months ended September 30, 2008, ENP recognized non-cash unit-based compensation expense related to management incentive units of $1.1 million and $3.2 million, respectively, which is included in General and administrative expense in the accompanying Consolidated Statements of Operations. There have been no additional issuances of management incentive units.
During the three and nine months ended September 30, 2009, ENP paid cash distributions of approximately $23.5 million and $57.1 million, respectively, of which $11.0 million and $32.4 million, respectively, was paid to EAC and its subsidiaries and had no impact on EACs consolidated cash. During the three and nine months ended September 30, 2008, ENP paid cash distributions of approximately $23.1 million and $52.3 million, respectively, of which $14.7 million and $32.7 million, respectively, was paid to EAC and its subsidiaries and had no impact on EACs consolidated cash.
During the three and nine months ended September 30, 2008, ENP paid cash distributions of approximately $1.2 million and $2.4 million, respectively, to certain executive officers of GP LLC, who serve in the same capacities for EAC, based on their ownership of management incentive units.
Read the The complete ReportEAC is in the portfolios of Ron Baron of Baron Funds, John Keeley of Keeley Fund Management.
