Titan Energy LLC will sell its 25% interest in the CO2 flood Rangely Field in Rio Blanco County, Colo., for $105 million, the Fort Worth, Texas, company said June 12.
Titan CEO Daniel Herz said the company’s sales will de-lever the business through “credit-accretive asset sales.”
The announcement follows a May deal in which the company parted with conventional Appalachia and Marcellus assets for $84.2 million as the company continues to eliminate debt and focus on the Eagle Ford Shale.
“This transaction, along with the previously announced sale of Appalachia, reduces Titan’s debt by $189 million and allows the company to focus on development of the Eagle Ford Shale, where well results continue to exceed type curve expectations,” Herz said.
In addition to its interests in Rangely, Titan is also selling its 22% interest in Raven Ridge Pipeline, a CO2 transportation line, as well as surrounding acreage in Rio Blanco and Moffat counties, Colo.
The Rangely assets averaged about 2,500 barrels of oil equivalent per day (90% oil, 10% liquids) in first-quarter 2017. The assets are operated by Chevron Corp. (NYSE: CVX).
Titan said in April that it also plans to sell coalbed methane assets in the Raton Basin in New Mexico and Colorado. In fourth-quarter 2016, the assets produced about 63 million cubic feet of gas per day. The company said 600 miles of gathering assets are in place in the vicinity.
Titan has about 10,500 net acres in Atascosa County, Texas, in the Eagle Ford with an estimated 70 Lower Eagle Ford locations.
The Rangely transaction is subject to customary closing conditions. The deal is expected to close in August with an effective date of May 1.
Net proceeds will be used to repay a portion of outstanding borrowings under Titan’s first lien credit facility.
RBC Richardson Barr marketed Titan’s Rangely Assets. Jones Day advised on the legal aspects of the transaction.
Darren Barbee can be reached at dbarbee@hartenergy.com.
Recommended Reading
Tellurian, Institution Investor Agree to New Loan Repayment Terms
2024-02-22 - Tellurian reached an agreement with an unnamed institutional investor to pledge its interest in the Driftwood project as collateral.
Tellurian Executive Chairman ‘Encouraged’ by Progress
2024-03-18 - Tellurian announced new personnel assignments as the company continues to recover from a turbulent 2023.
Range Resources Holds Production Steady in 1Q 2024
2024-04-24 - NGLs are providing a boost for Range Resources as the company waits for natural gas demand to rebound.
Shell’s CEO Sawan Says Confidence in US LNG is Slipping
2024-02-05 - Issues related to Venture Global LNG’s contract commitments and U.S. President Joe Biden’s recent decision to pause approvals of new U.S. liquefaction plants have raised questions about the reliability of the American LNG sector, according to Shell CEO Wael Sawan.
BP Pursues ‘25-by-‘25’ Target to Amp Up LNG Production
2024-02-15 - BP wants to boost its LNG portfolio to 25 mtpa by 2025 under a plan dubbed “25-by-25,” upping its portfolio by 9% compared to 2023, CEO Murray Auchincloss said during the company’s webcast with analysts.