HOUSTON, April 30, 2014 /PRNewswire/
EP Energy Corporation (NYSE:EPE, “EP Energy”, or the “Company”) today announced that it closed on an acquisition of certain producing properties and undeveloped acreage directly offsetting existing Wolfcamp operating areas in Reagan and Crockett Counties in the Southern Midland Basin. The company also announced it has entered into a definitive agreement with Indigo Minerals, LLC to divest certain non-core assets in the Arklatex Cotton Valley and South Louisiana Wilcox areas. The aggregate cash purchase price for the acquired properties is $153 million, while the divested properties will generate $150 million of cash proceeds. The acquisition is expected to be immediately accretive to net asset value and cash flow per share.”
EP Energy entered into an agreement for the sale of its legacy Arklatex Cotton Valley natural gas properties and conventional South Louisiana Wilcox oil and gas properties further concentrating its asset base within its current core operating areas.
The assets under the sale agreement consist of approximately 78,000 net acres (excluding Haynesville rights) with net production of approximately 21 MMcfe/d (approximately 85 percent natural gas) and total estimated proved reserves based on Company estimates of 84 Bcfe (billion cubic feet equivalent) at 12/31/13.
This transaction is expected to close in the second quarter of 2014. Proceeds from the non-core asset sales will offset the funds used for the acquisition.