Jones Energy, Inc. Exits Arkoma Basin with Non-Core Asset Sales
AUSTIN, Texas, June 22, 2017 (GLOBE NEWSWIRE) — Jones Energy, Inc. (NYSE:JONE) (“Jones Energy” or “the Company”) announced today that it has entered into definitive agreements to sell several non-core assets, including an agreement to sell its Arkoma Basin properties (the “Arkoma Agreement”), for a combined total of up to $70 million, subject to closing adjustments. The Company continues to actively market additional non-core assets.
The Arkoma Agreement represents a sale price of $65 million cash, plus up to a $2.5 million contingent payment based on improving natural gas prices. Other non-core assets sold to-date in 2017 total $2.5 million. Subject to customary closing conditions, the Arkoma transaction is expected to be completed during the third quarter of 2017. The Company expects to use net proceeds to repay outstanding borrowings under its revolving credit facility.
Jonny Jones, founder, chairman and CEO said, “We continue to execute on our 2017 goals, ramping activity in the Merge and selling non-core assets to reduce our debt and improve our balance sheet. The sale of our Arkoma basin asset and other properties is a significant catalyst in our deleveraging story. The Arkoma represents just 6% of our projected 2017 revenues and we view the deal as an accretive transaction to the Company. I look forward to updating you with additional non-core asset sales as they occur.”
Detring Energy Advisors served as exclusive advisor for the Arkoma asset sale.
About Jones Energy
Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko basin of Texas and Oklahoma.