Harvest Oil & Gas Corp. completed the sales of its Barnett Shale assets and certain Midcontinent area properties for a total of $68.9 million.
The oil and gas company closed the divestment of all its interests in the Barnett Shale for $63.5 million, after preliminary purchase price adjustments, according to a Sept. 16 news release. Included in the adjustments is a $6.4 million reduction in the deal price related to the interests not included in the initial closing but would be included in a separate closing this year.
Harvest also completed the sale of some oil and gas properties in the Midcontinent area in the Anadarko Basin and SCOOP/STACK plays for $5.4 million, after preliminary purchase price adjustments.
Net proceeds from the asset sales will be returned to shareholders in the form of dividends, distributions or share buybacks. Harvest agreed with Regions Bank to form a new revolving credit facility that will enable the company to buy back shares, which is not allowed under the current facility's terms. Harvest expects to close the new facility in the third quarter.
In addition, Harvest tapped Intrepid Partners LLC to assist the company in a strategic review process that includes the potential divestment of assets, a sale of the company or a merger. The evaluation, however, may not lead to a deal or other strategic outcome.
UBS Investment Bank was the financial adviser and Kirkland & Ellis LLP was the legal adviser to Harvest on the sales.
