EOG Resources Inc. (EOG) and Newfield Exploration Co. (NFX) said
they have mutually agreed to terminate an agreement announced last
month regarding EOG's planned sale of 50,000 acres of natural-gas
rich land in Pennsylvania's Marcellus Shale.
The sale was expected to total $405 million and, at the time, it
was expected the deal would close by the end of the year.
The acreage represented less than 0.5% of EOG's North American
production, and EOG was expected to retain 170,000 net acres in the
Marcellus shale, a tight rock formation spanning several
northeastern states, if the sale were to occur.
The move was a part of EOG's divestiture program, which was
expected to bring in about $1 billion by the end of the year. A
company spokeswoman wasn't immediately available to comment on how
the termination of the deal would impact that program.
A day after the November announcement, Moody's Investors Service
cut its outlook on EOG as the company has been boosting debt amid
acquisition efforts. The ratings agency noted concern about its
shift in financial policy and the challenges stemming from its
aggressive growth into oil and natural gas liquids plays.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com
--Angel Gonzalez contributed to this report.