Energen Corp.

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
160MM
Description

Closed on previously announced sale of Black Warrior Basin assets for $160 million.

Energen Corp. (NYSE: EGN) announced Oct. 9 that it closed on a previously announced sale of its Black Warrior Basin assets for $160 million.

The undisclosed buyer, a limited liability corporation, also assumed Energen’s third-party operating agreements.

In the fourth quarter of 2013, Energen will reflect a non-cash gain on the transaction of approximately $33 million.

Energen plans to use the net proceeds of about $150 million to reduce short-term indebtedness.

The Black Warrior Basin coal-bed methane assets are located in Alabama. They were valued by analysts at $150-$200 million.

The deal should allow EGN to accelerate activity in its numerous high rate-of-return horizontal projects in the Permian Basin, Gabriele Sorbara, an analayst for Topeka Capital Markets has said.

While Black Warrior asset sale was small, management appears to be receptive to selling other assets within its portfolio and trending towards a pure play Permian company with more than 300,000 net acres, Sorbara said.