Penn Virginia Corp. has entered into a definitive agreement to sell its Eagle Ford shale natural gas midstream assets to a newly formed affiliate of ArcLight Capital Partners LLC for $100 million. The sale is expected to close in first-quarter 2014.
Penn Virginia plans to use the proceeds from the sale to help fund its 2014 capital expenditure plan.
“The divestiture of our natural gas midstream assets is the first step in a series of potential divestitures which will reduce our indebtedness, improve our liquidity, and fund further investment in our oily Eagle Ford shale play,” said H. Baird Whitehead, Penn Virginia’s president and chief executive officer.
The company’s primary assets reside in the Eagle Ford.
Penn Virginia in April agreed to acquire producing and undeveloped leasehold interests in the play from Magnum Hunter Resources Corp. for $400 million (OGJ Online, Apr. 8, 2013).
In October 2012, the company increased its acreage position in the Eagle Ford to 30,000 net, 40,100 gross acres with the purchase of 4,100 net acres in Gonzales and Lavaca counties, Tex., for $10 million (OGJ Online, Oct. 3, 2012).