Ocean Energy, United Meridian to Merge

Ocean Energy Inc. and United Meridian Corp. agreed to merge in a deal that would create the nation’s ninth-largest oil and gas exploration company. Ocean Energy, based in Baton Rouge, La., has the majority of its holdings in the Gulf of Mexico and on the Gulf Coast. United Meridian’s most promising properties are off the coast of Africa, though it also has holdings in the U.S. Gulf. The merged company should be able to cut costs and find it easier to borrow money to exploit deep-water sites and other exploration properties, analysts said. The firms’ combined stock market value was about $2.3 billion. The new company would be called Ocean Energy Inc. and be based in Houston, where United Meridian is now. Under the agreement, each United Meridian share will be converted into 1.3 shares of the combined company, and each Ocean Energy share will be converted to 2.34 shares. On the NYSE, United Meridian shares closed down $2.63 at $29.63, and Ocean Energy shares closed up $1.75 at $51.75.