Subject to approval by its Board of Directors, Harvest plans to use net proceeds from the sale to return capital to its shareholders.
Image: Harvest is an independent oil and gas company engaged in operation and development of onshore oil and gas properties. Photo: Courtesy of rawpixel from Pixabay.
Harvest Oil & Gas announced that it has entered into a definitive agreement to sell substantially all of its interests in the Barnett Shale to an undisclosed buyer for $72 million (subject to purchase price adjustments). The transaction is expected to close in the third quarter of 2019 and has an effective date of April 1, 2019. Subject to approval by its Board of Directors, Harvest plans to use net proceeds from the sale to return capital to its shareholders. Harvest expects to provide updated guidance for the second half of 2019 in its second quarter earnings release.
Harvest’s Barnett Shale production for the first three months of 2019 averaged 55.6 MMcfe per day. The estimated proved reserves as of December 31, 2018 for the interests being divested, using SEC prices, were 276.6 Bcfe (62% natural gas, 37% natural gas liquids and 1% crude oil).
UBS Investment Bank is acting as financial advisor and Kirkland & Ellis LLP is acting as legal advisor to Harvest on this transaction.
Harvest is an independent oil and gas company engaged in the efficient operation and development of onshore oil and gas properties in the continental United States. The Company’s assets consist primarily of producing and non-producing properties in the Barnett Shale, the Appalachian Basin (which includes the Utica Shale), Michigan, the Mid-Continent areas in Oklahoma, Texas, Kansas and Louisiana, the Permian Basin and the Monroe Field in Northern Louisiana. More information about Harvest is available on the internet at https://www.hvstog.com.
Source: Company Press Release.