Penn Virginia sells Eagle Ford Shale assets
Penn Virginia Corporation (PVA) has announced that it has entered into a definitive agreement to sell substantially all of its Eagle Ford Shale natural gas midstream assets to a newly-formed affiliate of ArchLight Capital Partners, LLC for gross case proceeds of US$ 100 million.
The sale is expected to close during the first quarter of 2014 and is subject to customary closing conditions. Net of PVA's interest in the gross proceeds from this sale, it intends to use the remaining proceeds of approximately US$ 95 million to help fund its 2014 capital expenditure plan.
The assets to be sold include a natural gas gathering and gas lift system, including approximately 119 miles of pipeline and associated facilities located in Gonzales and Lavaca Counties, Texas. Acquest Advisors LLC, served as PVA's financial advisor in connection with the transaction.
H. Baird Whitehead, President and Chief Executive Officer, stated, “The divestiture of our natural gas midstream assets is the first step in a series of potential divestitures which will reduce our indebtedness, improve our liquidity and fund further investment in our oily Eagle Ford Shale play.”
Adapted from press release by Hannah Priestley-Eaton
Read the article online at: https://www.worldpipelines.com/business-news/18122013/penn_virginia_sells_eagle_ford_shale_assets/
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