Merrill Lynch today announced an agreement to acquire Petrie Parkman & Co., an investment bank specializing in mergers and acquisitions, asset and private company divestitures, corporate finance, and equity research for the North American oil and gas industry.

The proposed transaction will combine Merrill Lynch’s investment banking capabilities with the specialized exploration and production energy expertise of Petrie Parkman, and leverage the commodities trading business of Merrill Lynch Commodities Inc.

Merrill says that this deal will expand its ability to provide clients with capital markets expertise, industry-focused strategic advice and to effectively mitigate commodity price and other risks. In addition, the transaction will allow Merrill Lynch to further expand the breadth and depth of its energy research coverage.

Financial terms were not disclosed.

“Petrie Parkman has a strong reputation in the exploration and production industry built upon a focus on client service,” said Greg Fleming, president of Merrill Lynch’s Global Markets & Investment Banking group. “The combination of Merrill Lynch’s broad energy capabilities with the specialized oil and gas expertise of Petrie Parkman will enable us to provide outstanding services to energy clients around the world.”

Founded in 1989, Petrie Parkman operates offices in Houston and Denver and offers advisory and investment banking services to the energy industry. “I am proud of our history of success in serving the oil and gas industry and look forward to bringing the enormous resources of Merrill Lynch to bear for our clients,” said Petrie Parkman CEO Tom Petrie, who will become a vice chairman of Merrill Lynch and member of the executive client coverage group. “When these resources are aligned with our shared emphasis on long-term relationships, it will enable us to provide expanded world-class services to energy companies and investors.”

“The acquisition of Petrie Parkman will create one of the strongest energy investment banking teams on Wall Street, by combining Merrill Lynch’s world-class energy bankers with the specialized exploration and production expertise of Petrie Parkman,” said Victor Nesi, head of Americas Investment Banking at Merrill Lynch. “We look forward to expanding our client coverage and bringing our enhanced capabilities to the marketplace.”

Petrie Parkman’s mergers and acquisitions, asset and private company divestitures, and corporate finance businesses will be part of the Energy and Power Group of Merrill Lynch’s Global Markets & Investment Banking group. Petrie Parkman’s equity research staff will become part of Merrill Lynch’s Global Securities Research & Economics Group. The transaction is expected to close in the fourth quarter of 2006 and is subject to regulatory approvals.