Energen Corp. (NYSE: EGN) announced Oct. 9 that it closed on a previously announced sale of its Black Warrior Basin assets for $160 million.
The undisclosed buyer, a limited liability corporation, also assumed Energen’s third-party operating agreements.
In 4Q 2013, Energen will reflect a non-cash gain on the transaction of approximately $33 million.
Energen plans to use the net proceeds of about $150 million to reduce short-term indebtedness.
The Black Warrior Basin coal-bed methane assets are located in Alabama. They were valued by analysts at $150-$200 million.
The deal should allow EGN to accelerate activity in its numerous high ...