HOUSTON, December 11, 2020 / PRNewswire / – EP Energy Corporation (“EP Energy” or the “Company”) today announced that it has entered into a purchase and sale agreement with an undisclosed buyer to dispose of the assets of EP Energy located in the Southern Midland Basin. The transaction is expected to close by the end of January 2021.
Pro forma of the divestiture, EP Energy will hold approximately 410,000 gross acres (275,000 net) in Northeastern Utah and the Eagle Ford. The average daily net production for the third quarter of 2020 pro forma for the transaction was 48,400 barrels of oil equivalent per day and 31,600 barrels of oil per day. The company intends to use the proceeds to reduce borrowing under its reserve-based loan facility. Pro forma for the transaction, the company expects net debt at the end of 2020 to be approximately $ 100 million and net debt on Adjusted EBITDA to approximately 0.3x.
President and CEO Russell parker said: “We are very pleased to announce this transaction which allows EP Energy to strengthen its portfolio and significantly reduce its debt. Following the divestiture, EP Energy will have minimal leverage, a strong liquidity position and an asset base that can generate attractive returns. and free cash flow in the current pricing environment. “
About EP Energy Corporation
The company is focused on enhancing the value of its portfolio of high quality assets, increasing capital efficiency, maintaining financial flexibility and pursuing profitable acquisitions and divestitures. EP Energy strives to set the standard for efficient hydrocarbon development in the United States. To learn more, visit epenergy.com.
Forward-looking statements
This press release contains certain forward-looking statements and projections of EP Energy. These statements are subject to risks and uncertainties which could cause the results to differ materially from the expectations of the company. Although the company makes these statements in good faith, neither the company nor its management can guarantee that the expected future results will be achieved. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statement made by the company, whether as a result of new information, future events or otherwise. All forward-looking statements attributable to the Company or to persons acting on behalf of the Company are expressly qualified in their entirety by the foregoing cautionary statements. All of these statements speak only as of the date they are made and, except as required by law, the Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: Brian Bradshaw, [email protected]
SOURCE EP Energy Corporation
Related links
http://www.epenergy.com