EP Energy Enters into Agreements for the Sale of NG Properties

Source: www.gulfoilandgas.com 7/17/2013, Location: North America

EP Energy LLC announced that it has entered into three separate purchase and sale agreements for the sale of natural gas properties as a result of a previously announced marketing effort. The company entered into an agreement with Atlas Resource Partners, L.P. relating to the company’s coal bed methane (CBM) properties primarily located in the Raton, Black Warrior, and Arkoma basins and an agreement with WildHorse Resources II, LLC, relating to the company’s Arklatex conventional gas assets located in East Texas and North Louisiana. EP Energy also entered into an agreement with another purchaserfor its legacy South Texas conventional gas assets.

The aggregate sales price for the properties is approximately $1.3 billion, subject to customary adjustments. As of December 31, 2012, the company had an estimated 909 billion cubic feet equivalent of proved reserves and average daily production through March 31, 2013 ofapproximately 215 million cubic feet equivalent per day associated with the properties. During the first quarter 2013, the properties generated approximately $40 million of EBITDAX.

“We are pleased to be taking another important step in transforming and concentrating our portfolio in large, repeatable, high return asset areas. This series of transactions increases our focus on high margin oil plays, and also retains our highest return gas asset in the Haynesville Shale,” said Brent Smolik, president and chief executive officer of EP Energy. “We are very pleased with the outcome of the asset sales process and the agreements we have entered into with high quality buyers. Going forward, our portfolio consists of more than 20 years of drilling inventory in some of the highest return plays in North America, including the Eagle Ford Shale, the Wolfcamp Shale, the Uinta Basin and the Haynesville Shale areas.”

Closing of each of the transactions is expected to occur during the third quarter 2013. Proceeds will primarily be used for capital investments and to improve the company’s balance sheet as well as other general corporate purposes. 2 Evercore Partners acted as the company’s financial advisor for the CBM and Arklatex properties and RBC Capital Markets acted as financial advisor for the South Texas assets. EP Energy’s legal advisor was Akin Gump Strauss Hauer & Feld LLP.

For more information about related Opportunities and Key Players visit Coalbed Methane (CBM)

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Related Categories: Coalbed Methane  General  Heavy Oil  Methane Clathrate  Oil Sands  Oil Shale  Shale Gas  Tight Gas  Tight Oil 

Related Articles: Coalbed Methane  General  Heavy Oil  Methane Clathrate  Oil Sands  Oil Shale  Shale Gas  Tight Gas  Tight Oil 

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