Quarterly report pursuant to Section 13 or 15(d)

Merger and Acquisition (Tables)

v3.7.0.1
Merger and Acquisition (Tables)
 3 Months Ended
Mar. 31, 2017
Business Combinations [Abstract]  
Schedule of Total Consideration Exchanged

The total consideration exchanged was as follows (in thousands, except share and per-share amounts):

 

                                   

Number of shares of Magellan common stock outstanding(1)

      5,985,042     

Price per share of Magellan common stock(2)

    $ 14.21     
  

 

 

     

Aggregate value of Tellurian common stock issued

       $ 85,048  

Fair value of stock options(3)

         2,821  
     

 

 

  

Net purchase consideration to be allocated

       $ 87,869  

 

(1)

The number of shares of Magellan common stock issued and outstanding as of February 9, 2017.
(2)

The closing price of Magellan common stock on the NASDAQ on February 9, 2017.
(3)

The estimated fair value of Magellan stock options for pre-Merger services rendered.
Schedule of Preliminary Purchase Price Allocation to Assets Acquired and Liabilities Assumed in Transaction

The preliminary purchase price allocation to assets acquired and liabilities assumed in the transaction was as follows (in thousands):

 

                 

Fair Value of Assets Acquired:

   

Cash

    $ 56  

Securities available for sale

      1,111  

Other current assets

      93  

Unproved properties

      13,000  

Wells in progress

      332  

Leasehold improvements

      67  

Other long-term assets

      19  
  

 

 

  

Total assets acquired

      14,678  

Fair Value of Liabilities Assumed:

   

Accounts payable and other liabilities

      4,393  

Notes payable

      8  
  

 

 

  

Total liabilities assumed

      4,401  
  

 

 

  

Total net assets acquired

      10,277  
  

 

 

  

Goodwill as a result of the Merger

    $ 77,592  
  

 

 

  
Schedule of Unaudited Pro Forma Results

The following table provides unaudited pro forma results for the three months ended March 31, 2017 and March 31, 2016, as if the Merger occurred and Parallax Services had been acquired as of January 1, 2016 (in thousands, except per-share amounts):

 

                                                                                                                                         
     Three Months Ended March 31,  
     2017      2016  
     As Reported      Pro Forma
Adjustments		     Pro Forma      As Reported      Pro Forma
Adjustments		     Pro Forma  

Revenues

    $ —        $ —       $ —        $ —        $ —       $ —    

Net loss attributable to

common stockholders

      (141,349 )       (3,742 )(a)      (145,091 )       (7,193 )       (11,364 ) (a)      (19,038 ) 
                (481 ) (b)   

Net loss per basic share

    $ (0.92 )       $ (0.92 )     $ (0.16 )       $ (0.37 ) 

Basic and diluted weighted

average common shares

outstanding

      154,213          157,618        44,393          50,878  

 

(a)

Adjustment for the historical net loss of Magellan and an increase in compensation expense associated with the addition of three new directors. The addition of the new directors was directly attributable to the Merger.
(b)

Adjustment for the historical net loss of Parallax Services prior to the acquisition.