what happened to hondo oil and gas formally Pauley petro.?
- Anonymous1 decade agoFavorite Answer
Houston will add another publicly traded energy company to its roster later this year, when Roswell, N.M.-based Hondo Oil & Gas moves its corporate headquarters here.
This latest corporate relocation, however, isn't likely to excite the Houston housing market too much.
Only one Hondo employee -- C.B. McDaniel, company secretary and counsel -- will be moving from New Mexico to Houston. The corporate office eventually will house four workers.
The company's president and chief executive, John Hoey, won't be moving here. He'll continue to live in Pennsylvania.
Still, Paul Hayes, an analyst with Oppenheimer & Co., said the move only makes sense. "Roswell is not exactly the transportation center of the Western Hemisphere."
With revenues of only $44,000 in fiscal 1995, Hondo Oil & Gas has never exactly been a blue chip stock.
But the chairman of this oil and gas producer is Robert O. Anderson, the former chairman of Atlantic Richfield Co. and a legend in the Oil Patch.
And the company became the talk of the industry when it sold off all its other oil and gas assets and bet the ranch on one investment, development of the Opon gas field in Colombia.
The partners in the project, led by Chicago-based Amoco Corp., planned to build a $59 million pipeline and sell 80 million cubic feet of gas a day to Ecopetrol, Colombia's state-owned oil company.
Impressed by the field's prospects and by the Anderson mystique, investors pushed up Hondo shares to a high of 241/8 in August.
"This was a good project," McDaniel said. "It made sense."
But then the Colombian government changed the terms of the deal, insisting on a lower gas price ceiling and less-favorable pipeline tariff terms.
Suddenly, the whole project was in jeopardy. Last week, Hondo's stock plunged to a low of 9¼.
Under the current terms, "we would think it probably would not go forward," McDaniel said. "We don't know at the moment."
By Wednesday, the company's stock had rebounded to 107/8 on word that London-based Lonrho PLC, the company's chief creditor, had completed its plan to gain control over 77 percent of Hondo Oil & Gas voting stock.
Anderson will stay on as chairman of the company, though he and his family will retain only a minority stake.
- 1 decade ago
It was purchased in 1963 by Atlantic Richfield Company (ARCO), which was, in turn, purchased by bp (British Petroleum)
The information in the previous post reflects Hondo as a subsidiary of Atlantic Richfield.