Titan Energy Announces Agreement to Sell Appalachian Assets
FORT WORTH, Texas, May 05, 2017 (GLOBE NEWSWIRE) -- Titan Energy, LLC (“Titan”) (OTCQX:TTEN) has entered into a definitive agreement to sell its conventional Appalachia and Marcellus assets to Diversified Gas & Oil, PLC (“Diversified”), for $84.2 million.
“This transaction continues Titan’s transformation into a growth-oriented oil and gas company focused on the development of the Eagle Ford Shale,” said CEO Daniel Herz. “We are selling these assets at an attractive multiple of future cash flows, delevering our business and improving our operational efficiency.”
The transaction includes the sale of approximately 8,400 oil and gas wells across Pennsylvania, Ohio, Tennessee, New York and West Virginia, along with the associated infrastructure (the “Appalachian Assets”). In 2016, the Appalachian Assets generated approximately 30 MMcfepd of net production (92% gas, 8% liquids). Titan will retain its Utica Shale position, Indiana assets and West Virginia CBM assets in the region.
The transaction is subject to customary closing conditions, has an effective date of April 1, 2017 and is expected to close in June 2017. The net proceeds will be used to repay a portion of outstanding borrowings under Titan’s first lien credit facility. The transaction will improve Titan’s first lien credit metrics and is expected to fulfill Titan’s borrowing base step down to $360 million, which is scheduled to occur on August 31, 2017.
Upon conclusion of the transaction, Titan will relocate its headquarters to Fort Worth, Texas.
Detring Energy Advisors marketed Titan’s Appalachian Assets. Jones Day advised on the legal aspects of the transaction.