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EP Energy to acquire Eagle Ford producing assets, divest Uinta Basin acreage

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EP Energy to acquire Eagle Ford producing assets, divest Uinta Basin acreage

EP Energy Corp. agreed to acquire producing assets and undeveloped acreage from existing operating areas in the Eagle Ford from Carrizo Oil & Gas Inc. for $245 million, according to a Dec. 14 news release.

The assets, located primarily in LaSalle County in South Texas, consist of about 24,500 net acres, expanding EP Energy's Eagle Ford position by 26%. It reported net production of about 3,400 barrels of oil equivalent per day, on a three-stream basis, in the third quarter of 2017. The assets are 95% operated, with EP Energy currently operating the other 5%. The deal increases the company's horizontal shale inventory by about 200 future drilling locations and allows for extensions of about 30 existing undeveloped locations.

EP Energy also announced that it entered into an agreement to divest about 23,330 net acres in the Altamont area of the Uinta Basin to an undisclosed party for estimated proceeds of about $180 million. The assets represent about 14% of the company's acreage position, with net production in the third quarter of 2017 reported at 1,500 boe/d.

"Generating improved returns is a key driver as we look across the company to optimize our capital program," said EP Energy president and CEO Russell Parker. "We are pleased to enhance our portfolio, while divesting assets at a high value, and we are doing so in a cash flow and balance sheet friendly manner."

Both transactions are expected to close in the first quarter of 2018.