East Resources Announces Closing Of Utica And Marcellus Divestitures
BOCA RATON, Fla., Aug. 5, 2014 /PRNewswire/ -- East Resources, Inc. (ERI) announced today it has closed on agreements, along with an unnamed joint venture partner, to divest approximately 27,000 net acres of leasehold, 56 MMCFPD from 9 producing wells, 14 miles of 12-inch pipeline and related infrastructure, including an existing tap on a Spectra transmission line, all located in Monroe County, Ohio to American Energy – Utica, LLC (AEU), an affiliate of American Energy Partners, LP (AELP).
In a separate transaction, ERI and a separate AELP platform company, American Energy – Marcellus, LLC (AEM), closed on agreements selling approximately 48,000 net acres of leasehold, 107 MMCFED from 24 producing wells, 10 miles of 16-inch pipeline and related infrastructure, 2 pipeline taps into Dominion and Williams transmission lines, all in Doddridge, Harrison, Marion, Tyler and Wetzel Counties, West Virginia to AEM.
The combined acquisition price of the transactions is $1.75 billion. Jefferies LLC acted as financial advisor to ERI. Baker Botts, LLP and Kirkland & Ellis, LP acted as legal advisors to ERI.
In July of 2010, through an affiliate, ERI sold its Marcellus and other producing assets in Pennsylvania, New York, and Colorado to an affiliate of Royal Dutch Shell, with a deal value of $4.7 billion. The transactions with AEU and AEM maintain ERI's position as company with a leadership history of value creation in the oil and gas industry.
"ERI, through these divestitures, has again demonstrated that our team is truly a leader in the domestic oil and gas industry. Our affiliate companies still retain significant oil and gas assets in Colorado, Wyoming, New York, West Virginia, and Pennsylvania. "We are not going away. We are oil and gas finders and are proud of our accomplishments in supplying North America with safe, affordable, and clean energy in significant volumes to have a positive impact on our nation and its well-being. AEU and AEP will take these assets, enhance and develop their infrastructure with again positive results for the economy of the United States, especially the regions they drill and produce from," stated Terrence M. Pegula, President and CEO of ERI.
About East Resources, Inc.: East Resources was founded by Terrence M. Pegula in 1983 and is the flagship company of a group of onshore oil and gas exploration and production companies he controls. These companies own over 250,000 net acres in Colorado, Wyoming, Pennsylvania, and New York, including approximately 110,000 net acres of fee, mineral, and oil and gas interests.
Contact: John Sieminski, 1-724-935-8943, firstname.lastname@example.org
SOURCE East Resources, Inc.