Rex Energy to Sell Utica Assets for $30 Million
STATE COLLEGE, Pa. — Rex Energy Corp. has agreed to sell its Ohio Utica assets in Guerney, Noble and Belmont counties to Antero Resources Corp. The transaction, announced today, is valued at $30 million.
Antero, an exploration and production company focused on the Appalachia Basin, is headquartered in Denver. It holds more than 484,000 net acres in the southwestern core of the Marcellus shale and 145,000 net acres in the core of the Utica shale.
Rex Energy says the assets that are being divested, in its Warrior South Area, are non-core and were not part in the company’s future development plans. Included in the sale are 14 gross wells and approximately 4,100 net acres. The assets are currently producing approximately 9.0 million cubic feet of national gas per day. The company said it expects to use the proceeds from the sale to pay down the revolving line of credit and for general corporate purposes. The transaction is expected to close in the first quarter.
“Rex Energy routinely evaluates our asset portfolio to align our development plans with the strategic deployment of capital,” said Tom Stabley, Rex Energy president and CEO. “With limited opportunity to expand our development in Warrior South, and high quality assets located in near proximity to Antero’s operations, we view this transaction as a win-win for both parties.”
Upon the closing of the transaction, the company has received approval from its bank lenders to maintain the existing $190 million borrowing base under its revolving credit facility.
Stabley said the transaction is “another in a series of initiatives we’ve undertaken in the last 12 months to strengthen our balance sheet and enhance Rex’s liquidity position. Once completed, the sale of the Warrior South assets plus our previous sale of the Illinois Basin and other non-core assets will have generated over $71 million of additional liquidity.”
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