Penn Virginia Corporation announced on December 16th, 2013, that it has entered into a definitive agreement to sell substantially all of its Eagle Ford Shale natural gas midstream assets to a newly-formed affiliate of ArcLight Capital Partners, LLC for gross cash proceeds of US$100 million.
The sale is expected to close during the first quarter of 2014 and is subject to customary closing conditions. Net of PVA's interest in the gross proceeds from this sale, it intends to use the remaining proceeds of approximately US$ 95 million to help fund its 2014 capital expenditure plan.
The assets to be sold include a natural gas gathering and gas lift system including approximately 119 miles of pipelines and associated facilities located in Gonzales and Lavaca Counties, Texas.
Acquest Advisors LLC, served as PVA's financial advisor in connection with the transaction.
H. Baird Whitehead, President and Chief Executive Officer at Penn Virginia Corporation, said:
The divestiture of our natural gas midstream assets is the first step in a series of potential divestitures which will reduce our indebtedness, improve our liquidity and fund further investment in our oily Eagle Ford Shale play.
Penn Virginia Corporation is an independent oil and gas company engaged primarily in the exploration, development and production of oil, NGLs and natural gas in various domestic onshore regions of the United States, with a primary focus in Texas, and to a lesser extent, the Mid-Continent,Mississippi and the Marcellus Shale in Appalachia.