Jones Energy, Inc. Exits Arkoma Basin with Non-Core Asset Sales
June 22 2017 - 4:05PM
Jones Energy, Inc. (NYSE:JONE) (“Jones Energy” or “the Company”)
announced today that it has entered into definitive agreements to
sell several non-core assets, including an agreement to sell its
Arkoma Basin properties (the “Arkoma Agreement”), for a combined
total of up to $70 million, subject to closing adjustments. The
Company continues to actively market additional non-core assets.
The Arkoma Agreement represents a sale price of $65 million
cash, plus up to a $2.5 million contingent payment based on
improving natural gas prices. Other non-core assets sold to-date in
2017 total $2.5 million. Subject to customary closing conditions,
the Arkoma transaction is expected to be completed during the third
quarter of 2017. The Company expects to use net proceeds to
repay outstanding borrowings under its revolving credit
facility.
Jonny Jones, founder, chairman and CEO said, “We continue to
execute on our 2017 goals, ramping activity in the Merge and
selling non-core assets to reduce our debt and improve our balance
sheet. The sale of our Arkoma basin asset and other properties is a
significant catalyst in our deleveraging story. The Arkoma
represents just 6% of our projected 2017 revenues and we view the
deal as an accretive transaction to the Company. I look forward to
updating you with additional non-core asset sales as they
occur.”
Detring Energy Advisors served as exclusive advisor for the
Arkoma asset sale.
About Jones Energy
Jones Energy, Inc. is an independent oil and natural gas company
engaged in the development and acquisition of oil and natural gas
properties in the Anadarko basin of Texas and Oklahoma.
Additional information about Jones Energy may be found on the
Company’s website at: www.jonesenergy.com.
Forward-Looking StatementsThis press release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical facts, included in this press release that address
activities, events or developments that the Company expects,
believes or anticipates will or may occur in the future are
forward-looking statements. Without limiting the generality of the
foregoing, forward-looking statements contained in this press
release specifically include the expected use of proceeds from the
transactions contemplated by the Arkoma Agreement, the expected
timing of the closing of such transactions, the Company’s continued
marketing of non-core assets, and potential aggregate proceeds from
sales of non-core assets. These statements are based on
certain assumptions made by the Company based on management’s
experience and perception of historical trends, current economic
and market conditions, anticipated future developments and other
factors believed to be appropriate. Such statements are subject to
a number of assumptions, risks and uncertainties, many of which are
beyond the control of the Company, which may cause actual results
to differ materially from those implied or expressed by the
forward-looking statements.
Any forward-looking statement speaks only as of the date on
which such statement is made and the Company undertakes no
obligation to correct or update any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
Investor Contact:
Page Portas, 512-493-4834
Investor Relations Associate
Or
Robert Brooks, 512-328-2953
Executive Vice President & CFO