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Financial close of acquisition of Lattice Energy Ltd

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Oilfield Technology,


Beach Energy Limited has advised that the acquisition of Lattice Energy Limited from Origin Energy Limited has financially closed.

A completion payment of US$1498 million was paid on 31 January 2018, comprising the purchase price of US$1585 million less adjustments of US$87 million. Beach has received the economic benefit of Lattice since 1 July 2017, which is reflected in these adjustments and acquired cash, and includes free cash generation of approximately US$155 million in H1 FY18.

Payment was funded by existing cash reserves of US$503 million and drawdown of new debt facilities of US$995 million. Following payment, Beach has estimated cash reserves of US$135 million, drawn debt of US$995 million and undrawn debt facilities of US$405 million.

Net gearing upon financial close on 31 January 2018, is less than 33%. This is below original guidance of 35% at 31 March 20182 due to strong operating performance and cash generation by Lattice since 1 July 2017. Beach is therefore tracking ahead of previous gearing reduction estimates.

Further information in relation to Lattice will accompany Beach’s half year report, to be released on 19 February 2018.

Read the article online at: https://www.oilfieldtechnology.com/special-reports/01022018/financial-close-of-acquisition-of-lattice-energy-ltd/

 

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