Boston, MA 09/03/2014 (wallstreetpr) – The news revealed by Yahoo! Finance on September 2, 2014 stated that the LRR Energy LP (NYSE:LRE) has announced to enter into a definitive agreement with the natural gas and oil properties in Lincoln and Creek Counties in Oklahoma.
Transaction period:
The U.S. based energy company through the definitive agreement will acquire the oil and gas properties for $38 million. The predicted date of the transaction was September 1, 2014 and will continue till October 1, 2014, under customary closing conditions.
The Co-Executive Officers commented:
The Chairman and Co-Chief Executive Officer or LRR Energy LP (NYSE:LRE), Eric Mullins commented that the company is very much thrilled to announce the third-party acquisition. The Chairman also said that the company expects that this acquisition of the oil and gas properties will be accretive to the distributable cash flow on every unit. The acquisition will also establish a long-term value for the unit holders, said the Co-CEO.
Charlie Adcock, LRR Energy LP (NYSE:LRE)’s Co-Chief Executive Officer in a statement mentioned that the qualitative, low-decline and long-term assets are perfect for the company’s MLP structure. Moreover, it will complement the company’s Oklahoma operations.
The highlights of the acquisition:
The company anticipates financing the takeover via borrowings under its $500 million revolving credit facility. Presently, it has a borrowing case of $235 million before any rise for this purchase.
For the six-month tenure, ended June 30, 2014, the average net production is expected to be nearly 275 Boe per day. Through the acquisition, LRR Energy LP (NYSE:LRE) is expected to gain 110 active producing wells as well as 57 active injection wells. However, the property owned by LRR has a long-term production profile of proved developed reserve to production ratio of 24 years. The estimated annualized monthly operating cash flow for the acquisition was $6 million.
