Newfield Sells Eagle Ford Assets
Newfield exits the Lone Start State as they sell off their remaining assets in the Eagle Ford.
Newfield Exploration Company announced yesterday that they closed a $380 million transaction to sell its producing oil and gas properties and undeveloped acreage in Texas, including their Eagle Ford Shale holdings.
The deal also included conventional natural gas assets in south and west Texas. Combined daily production for all assets sold was approximately 12,700 BOEPD, of which approximately 35% was oil.
The Eagle Ford assets were sold to Protégé Energy III LLC., an independent oil and gas exploration and production company based in Tulsa, Oklahoma. The company website states they strive to achieve strong rates of return from investments in U.S. shale and conventional plays – all in a safe, ethical, and environmentally responsible manner.
Newfield announced the sale in August as a way to replenish their cash flow after a second quarter loss of $667 million. Stock for the Woodlands-based company fell 3.87% Tuesday to $39.50.
“Newfield said while today’s transactions with Protege Energy III llc won’t have a material impact on its Q3 operations or financial results, the deal likely will reduce its FY16 production totals and said it will update its outlook for the rest of the year when it reports its Q3 financial results in about four weeks. ”
Newfield made the news earlier this year when they were the target of oil thieves. Three men were taken into custody after admitting to stealing oil from Newfield and Anadarko between January 2011 and August 2014.