[Context: On December 21, Alta Marcellus Development acquired Marcellus assets from Ultra Petroleum for $115 million. Presumably, Alta Marcellus is an affiliate of Alta Resources, which in December 2016 announced a $1.24bn acquisition of assets from Anadarko Petroleum. Further details and related links are below.]
Ultra Petroleum Announces the Divestiture of Its Non-Core Marcellus Asset
HOUSTON, Dec. 21, 2017 (GLOBE NEWSWIRE) — Ultra Petroleum Corp. (the “Company”) (NASDAQ:UPL) today announced that it has reached a definitive agreement and closed on the sale to divest the Company’s non-operated asset in the Marcellus Shale to Alta Marcellus Development, LLC for a purchase price of $115 million in cash.
The divested assets include current net production of 30 million cubic feet per day, which contributed PDP PV-10 of $79 million to the bank syndicate’s borrowing base, and associated gathering assets. This transaction will have no impact on the Company’s current borrowing base which remains at $1.4 billion.
“This transaction is consistent with our previously announced intention to monetize our non-core assets and streamline our portfolio to focus on our higher returning Pinedale assets. We also believe it makes sense to bring the value of these assets forward and use these proceeds to help deleverage our balance sheet and further improve liquidity. We are currently working with CIBC Griffis & Small to begin marketing our Uinta Basin package and we hope to announce the sale of that asset in the coming months,” commented Michael D. Watford, Chairman, President and Chief Executive Officer.
About Ultra Petroleum
Ultra Petroleum Corp. is an independent energy Company engaged in domestic natural gas and oil exploration, development and production.