EP Energy LLC, the production and exploration unit formed when Apollo Global Management LLC (APO:US) bought El Paso Corp.’s oil and gas operations last year, agreed to sell $1.3 billion of assets in three deals.
Atlas Resource Partners LP (ARP:US) will buy EP’s coal-bed methane properties in the Raton, Black Warrior and Arkoma basins, Houston-based EP said today in a statement. WildHorse Resources LLC will take over gas fields in Texas and Louisiana, and a third company that wasn’t identified will purchase other assets in Texas.
The assets had a combined daily average production of 215 million cubic feet in the first quarter and generated earnings of $40 million before interest, taxes, depreciation, amortization and exploration expenses, according to the statement.
Evercore Partners Inc. (EVR:US) served as adviser for the sales to Atlas and WildHorse and Royal Bank of Canada was adviser for the third sale. The legal adviser was Akin Gump Strauss Hauer & Feld LLP.
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