Clayton Williams Energy Announces Agreement to Sell Giddings Area Assets for $400 Million

Clayton Williams Energy Announces Agreement to Sell Giddings Area Assets for $400 Million

Clayton Williams Energy, Inc. (the “Company”) (NYSE: CWEI) announced that it has entered into a definitive purchase and sale agreement with a third party to sell substantially all of the Company’s assets in the Giddings Area in East Central Texas for a sale price of $400 million. The sale is subject to customary closing conditions and adjustments. The Company expects to close the sale in December 2016 and use the proceeds from the sale to fund development in the Delaware Basin and repay a portion of its outstanding indebtedness.

The properties being sold produced an average of approximately 3,900 barrels of oil equivalent (BOE) per day (80% oil) for the quarter ended September 30, 2016 and accounted for approximately 9.7 million BOE of proved reserves as of September 30, 2016.

The sale transaction is another major step in the Company’s dramatic transformation since the beginning of 2016 and provides the following benefits:

  • Strengthens the Company’s balance sheet and liquidity
  • Transitions the Company into a pure play Permian Basin development company
  • Enhances the Company’s ability to focus on the efficient development of approximately 70,000 net acres in the southern Delaware Basin
  • Enables the Company to re-deploy capital to higher returning projects
  • Increases the Company’s flexibility to accelerate capital investment and create incremental shareholder value

SOURCE:  http://www.b2i.us/profiles/investor/ResLibraryView.asp?ResLibraryID=82558&BzID=844&g=539&Nav=0&LangID=1&s=454

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