3 Merger and Acquisitions Stock Stories Making Thursday Headlines

ConocoPhillips (NYSE:COP): Current price $67.04

On Thursday, ConocoPhillips said that it will divest its 100-percent stake in the Clyden oil sands leasehold to Imperial Oil and ExxonMobil Canada — in return for roughly $720 million before the usual adjustments. Comprising 226,000 net acres of undeveloped land, Clyden lies close to the southern edge of the Athabasca oil sands and south of Fort McMurray, Alberta. Executive Vice President, Commercial, Business Development and Corporate Planning Don Wallette observed that, “This transaction is a significant step toward rebalancing our world-class oil sands portfolio. We are pleased Imperial Oil and ExxonMobil Canada recognize the value of the Clyden asset.”

ConocoPhillips intends to record an after-tax gain of around $450 million, which will be recognized upon the close, which is expected later in the third quarter. Closing is contingent upon an okay by the Competition Bureau.

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Dollar General Corp. (NYSE:DG): Current price $54.77

Shares of both Dollar General and Family Dollar Stores Inc. (NYSE: FDO) are up modestly Thursday while analysts comment on a probable deal in the offing. Analyst Edward Kelly at Credit Suisse said that a DG and FDO fusion makes “compelling  strategic sense,” and thinks that Dollar General could pay between $90 and $100 per share for Family Dollar if FTC approval is given. This share range comes to a 30- to 40-percent premium above Family Dollar’s current share price around $72. Kelly says that such a deal could create a dominate retailer through lowered competition and a step towards a more proactive management style.

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Sanchez Energy Corp. (NYSE:SN): Current price $22.26

Sanchez announced Thursday that it will acquire around 40,000 net undeveloped acres in the core of the Tuscaloosa Marine Shale trend for cash and shares of its common stock, plus an initial 3-well drilling carry. Total money involved in the transactions will be roughly $78 million, comprised of $70 million of cash and 342,760 shares of common stock, which are valued at about $8.2 million, based on the close as of August 7. Sanchez is a quickly-growing independent oil and gas firm that targets the onshore United States Gulf Coast oil resource plays, having a current focus on the Eagle Ford Shale.

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