Penn Virginia To Sell Eagle Ford Shale Natural Gas Midstream Assets For $100 Mln

(RTTNews) - Penn Virginia Corp. (PVA) has agreed to sell substantially all of its Eagle Ford Shale natural gas midstream assets to a newly-formed affiliate of ArcLight Capital Partners, LLC for $100 million gross cash proceeds. The sale may close in the first quarter of 2014, subject to customary closing conditions.

Net of its partners' interest in the gross proceeds from this sale, the company plans to use the remaining proceeds of some $95 million to help fund our 2014 capital expenditure plan. The assets to be sold include a natural gas gathering and gas lift system including about 119 miles of pipelines and associated facilities located in Gonzales and Lavaca Counties, Texas.

Baird Whitehead, President and Chief Executive, stated, "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."

Acquest Advisors LLC, served as PVA's financial advisor in connection with the transaction.