HOUSTON, Dec. 14, 2017 /PRNewswire/ -- EP Energy
Corporation (NYSE: EPE) today announced that it has entered a
definitive agreement with Carrizo Oil & Gas, Inc. to acquire
certain producing properties and undeveloped acreage from existing
Eagle Ford operating areas primarily in LaSalle County in South
Texas. The company also announced it has entered into a
definitive agreement with an undisclosed party to divest certain
assets in the Altamont area of the Uinta Basin. The aggregate
cash purchase price for the acquired properties is approximately
$245 million, while the divested
properties will generate estimated proceeds of $180 million. The company expects to close both
transactions in Q1 2018, and both are subject to customary closing
adjustments.
"These transactions are consistent with our strategy of focusing
on adding high-quality assets in areas where we have a competitive
advantage," said Russell Parker,
president and chief executive officer of EP Energy
Corporation. "Our new team has a strong record of enhancing
asset performance, and we are excited about the opportunities we
see at EP Energy. Generating improved returns is a key driver as we
look across the company to optimize our capital program. We
are pleased to enhance our portfolio, while divesting assets at a
high value, and we are doing so in a cash flow and balance sheet
friendly manner."
Summary:
Acquisition
- Approximately 24,500 net acres, a 26 percent expansion of
current Eagle Ford position for $245
million
- Net production of approximately 3,400 barrels of oil equivalent
per day (Boe/d), on a three-stream basis, during the third quarter
2017
- Large contiguous position adjacent to existing operations
- 95 percent operated (EP Energy currently operates the other 5
percent)
- Increases horizontal shale inventory by approximately 200
future drilling locations
- Allows for extension on approximately 30 existing undeveloped
locations
Divestiture
- Approximately 23,330 net acres in the Altamont, approximately
14 percent of EP Energy's acreage position, for $180 million
- Net production of approximately 1,500 Boe/d during the third
quarter 2017
About EP Energy
The EP Energy team has a passion for finding and producing the
oil and natural gas that enriches people's lives. EP Energy has a
proven strategy, a significant reserve base, multi-year drilling
opportunities, and a strategic presence in a number of the
country's leading unconventional resource areas in North America. EP Energy is active in key
phases of the E&P value chain—acquiring, developing and
producing oil and natural gas. For more information about EP
Energy, visit epenergy.com.
Cautionary Statement Regarding Forward-Looking
Statements
This release includes certain forward‐looking
statements and projections of EP Energy. We have made every
reasonable effort to ensure that the information and assumptions on
which these statements and projections are based are current,
reasonable, and complete. However, a variety of factors could cause
actual results to differ materially from the projections,
anticipated results or other expectations expressed, including,
without limitation, the supply and demand for oil, natural gas and
NGLs; the company's ability to meet production volume targets; the
uncertainty of estimating proved reserves and unproved resources;
the future level of service and capital costs; the availability and
cost of financing to fund future exploration and production
operations; the success of drilling programs with regard to proved
undeveloped reserves and unproved resources; the company's ability
to comply with the covenants in various financing documents; the
company's ability to obtain necessary governmental approvals for
proposed E&P projects and to successfully construct and operate
such projects; actions by the credit rating agencies; credit and
performance risk of our lenders, trading counterparties, customers,
vendors and suppliers; changes in commodity prices and basis
differentials for oil and natural gas; general economic and weather
conditions in geographic regions or markets served by the company,
or where operations of the company are located, including the risk
of a global recession and negative impact on natural gas demand;
the uncertainties associated with governmental regulation,
including any potential changes in federal and state tax laws and
regulations; political and currency risks associated with
international operations of the company; competition; and other
factors described in the company's Securities and Exchange
Commission filings. While the company makes these statements and
projections in good faith, neither the company nor its management
can guarantee that anticipated future results will be achieved.
Reference must be made to those filings for additional important
factors that may affect actual results. EP Energy assumes no
obligation to publicly update or revise any
forward‐looking statements made herein or any other
forward‐looking statements made by EP Energy, whether
as a result of new information, future events, or
otherwise.
Contact
Investor and Media Relations
Bill Baerg
713-997-2906
bill.baerg@epenergy.com
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SOURCE EP Energy Corporation