ATI Monetizes Oil and Gas Rights in New Mexico
July 18 2019 - 8:15AM
Business Wire
Sales Increase Available Cash to Fund Balance
Sheet Improvement Initiatives
Allegheny Technologies Incorporated (NYSE: ATI) today announced
it has completed the sale of a portion of its oil and gas rights in
Eddy County, New Mexico and has reached an agreement to sell the
remaining portion of these rights, both to the same undisclosed
buyer. The completed second quarter 2019 sale and the definitive
sales agreement, anticipated to close in third quarter 2019, are
expected to generate over $90 million in pretax income and cash for
ATI.
These oil and gas rights were initially acquired by the company
in 1972 along with land purchased by Teledyne, Inc., which later
became part of ATI. The land was subsequently sold, with the
company retaining its underlying oil and gas rights.
“We continue to leverage the sale of non-core assets to increase
cash available to fund ongoing balance sheet improvement
initiatives,” said Robert S. Wetherbee, President and Chief
Executive Officer. “We remain focused on our balance sheet and
intend to make significant progress on both pension funding and
debt reduction over the next 12 months.”
ATI’s second quarter 2019 results will include pretax
non-operating income and cash flows of $29 million and it is
expected that third quarter 2019 results will include approximately
$62 million of pretax non-operating income and cash flows related
to these oil and gas rights sales.
Creating Value Thru Relentless Innovation™
ATI is a global manufacturer of technically advanced specialty
materials and complex components. ATI revenue was $4.1 billion for
the twelve-month period ended March 31, 2019. Our largest markets
are aerospace & defense, particularly jet engines. We also have
a strong presence in the oil & gas, electrical energy, medical,
automotive, and other industrial markets. ATI is a market leader in
manufacturing differentiated specialty alloys and forgings that
require our unique manufacturing and precision machining
capabilities and our innovative new product development competence.
We are a leader in producing powders for use in next-generation jet
engine forgings and 3D-printed aerospace products. See more at our
website ATImetals.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20190718005084/en/
Investor Contact: Scott A. Minder 412-395-2720
scott.minder@atimetals.com www.ATImetals.com
Media Contact: Natalie Gillespie 412-394-2850
natalie.gillespie@atimetals.com
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