On December 12, Carrizo Oil & Gas, Inc. (ticker: CRZO) announced that it would sell a portion of its Eagle Ford acreage to an undisclosed buyer. Today, EP Energy Corporation (ticker: EPE) disclosed that it was the buyer, acquiring certain producing properties and undeveloped acreage from existing Eagle Ford operating areas, primarily in LaSalle County, South Texas.
EP Energy acquisition
- Approximately 24,500 net acres, a 26 percent expansion of current Eagle Ford position for $245 million
- Net production of approximately 3,400 BOEPD, on a three-stream basis, during Q3 2017
- This equates to $10,000 per acre and $72,058 per flowing BOEPD
- Large contiguous position adjacent to existing operations
- Increases horizontal shale inventory by approximately 200 future drilling locations
- Allows for extension on approximately 30 existing undeveloped locations
Additionally, EP Energy announced today that certain Altamont acreage in the Uinta Basin would be sold to an undisclosed buyer for $180 million. The company expects to close both transactions in Q1 2018, and both are subject to customary closing adjustments.
EP Energy divestiture
- Approximately 23,330 net acres in the Altamont, approximately 14 percent of EP Energy’s acreage position, for $180 million. EP Energy will receive approximately $7,715 per acre from this sale
- Net production of approximately 1,500 BOEPD during Q3 2017, or approximately $120,000 per flowing BOEPD
“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 CEO of EP Energy.
“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.”
