Bill Barrett Sells Natural Gas Property In Uinta Basin For $369 Million

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
369MM
Description

Purchased West Tavaputs natural gas property located in the Uinta Basin.

Bill Barrett Corp. (NYSE: BBG) closed on its sale of the West Tavaputs natural gas property located in the Uinta Basin, Utah to affiliates of EnerVest Ltd. for $369 million, the company announced Dec. 10.

Denver’s Barrett holds interests in properties located in the Piceance, Uinta and Denver-Julesburg basins in the Rocky Mountain region.

Proceeds from the transaction have been applied towards the $390 million balance, as of Sept. 30, on the company's revolving credit facility. The company's borrowing base on its revolving credit facility was reduced by $200 million to $625 million in conjunction with the asset sale and will be adjusted to reflect year-end reserves as part of the normal redetermination schedule in March 2014.

The total transaction value includes $46 million for the purchaser's assumption of the company's lease financing obligation related to compressor units on the property. The transaction value was adjusted to the Aug. 1 effective date, based on preliminary accounting data, and for other customary closing adjustments, providing net cash proceeds to the company of $310 million.

Houston-based EnerVest, founded in 1992, acquires, develops and operates oil and gas fields in 15 states. As of November, the company had made seven acquisitions worth $1.4 billion.

As of Dec. 9, EnerVest sold QEP Resources Inc. (NYSE: QEP) Permian Basin assets for $950 million.

Bill Barrett Corp. is an independent energy company engaged in the exploration, development, and production of crude oil and natural gas in the U.S.