Blog Exposure - EP Energy Completed the Acquisition of Eagle Ford Acreage and Divestiture of Certain Altamont Acreage
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LONDON, UK / ACCESSWIRE / February 13, 2018 / Active-Investors.com has just released a free research report on EP Energy Corp. (NYSE: EPE). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=EPE as the Company's latest news hit the wire. On February 09, 2018, the Company announced that it has completed the acquisition of certain producing properties and undeveloped acreage in the Eagle Ford operating area in South Texas, from Carrizo Oil & Gas, Inc. The Company has also closed the divestiture of certain assets in its Altamont acreage in the Uinta Basin. The agreements were previously announced in December 2017. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, EP Energy most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Details of the Agreement
The total cash paid for the acquired properties was approximately $245 million. The divested properties generated estimated proceeds of approximately $180 million. Both transactions are subject to post-closing adjustments.
The transaction will increase the Company's future drilling inventory across its large contiguous position and allow for operational synergies. The agreement is consistent with EP Energy's strategy of focusing on adding high-quality assets in areas where it has a competitive advantage.
Acquisition and Divestiture Summary
EP Energy acquired approximately 24,500 net acres, thereby expanding the Company's acreage position by 26%. Net production of the acreage during Q3 2017 was approximately 3,400 barrels of oil equivalent per day (Boe/d), on a three-stream basis. The acquisition resulted in increased horizontal shale inventory by approximately 200 future drilling locations and allowed for extension on approximately 30 existing undeveloped locations.
The Company divested approximately 23,330 net acres in the Altamont, approximately 14% of EP Energy's acreage position. During Q3 2017, net production was approximately 1,500 Boe/d.
This Acquisition is the Largest to Date in EP Energy's History
Commenting on the agreement, Russell Parker, President and Chief Executive Officer of EP Energy, stated that the acquisition is the largest to date for the Company, and it was able to complete the transactions in a balance sheet friendly manner bringing forward value from the divestiture.
Russell added that the Company is also pleased that its team has already integrated the newly acquired assets into its operations. EP Energy now looks to further optimize these assets and grow production.
EP Energy Provided 2018 Outlook
On January 22, 2018, the Company provided its outlook for 2018 with an increased focus on improving capital efficiency and asset value.
In 2018, EP Energy expects capital spending to range from $600 million to $650 million and meaningfully grow adjusted EBITDA. The Company allocated approximately 10% of its spending for new concepts. Around 50% of the Company's capital program is allocated to the Eagle Ford, 30% to the Permian, and 20% to the Altamont. Equivalent production in 2018 is expected to range from 81 MBoe/d to 87 MBoe/d with 46 MBbls/d to 50 MBbls/d of oil production. During 2018, EP Energy expects to run a five-rig program with one to two rigs in the Eagle Ford, one rig in the Permian and two rigs in the Altamont program. EP Energy expects to increase cash flow with increased capital efficiencies and reduced operating costs.
About EP Energy Corp.
Founded in 2013 and headquartered in Houston, Texas, EP Energy is an independent exploration and production company that engages in the exploration for and the acquisition, development, and production of oil, natural gas, and natural gas liquids in the United States. The Company has interests in three primary areas - the Eagle Ford Shale located in South Texas; the Wolfcamp Shale located in Permian Basin in West Texas; and the Altamont Field located in the Uinta Basin in Northeastern Utah.
Stock Performance Snapshot
February 12, 2018 - At Monday's closing bell, EP Energy's stock climbed 6.43%, ending the trading session at $1.82.
Volume traded for the day: 599.40 thousand shares.
After yesterday's close, EP Energy's market cap was at $467.98 million.
The stock is part of the Basic Materials sector, categorized under the Independent Oil & Gas industry. This sector was up 1.9% at the end of the session.
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