EP Energy Corp. (EPE) to Sell Assets in Haynesville and Bossier Shales

March 21, 2016 11:18 AM EDT
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EP Energy Corp. (NYSE: EPE) disclosed in an SEC filing:

On March 18, 2016, subsidiaries (the “Sellers”) of EP Energy Corporation (the “Company”) entered into a Purchase and Sale Agreement (the “Purchase and Sale Agreement”) with Covey Park Gas LLC (the “Buyer”). Pursuant to the Purchase and Sale Agreement, the Sellers have agreed to sell to the Buyer substantially all of their assets located in the Haynesville and Bossier shales. The total consideration to be received by the Sellers pursuant to the Purchase and Sale Agreement is $420,000,000 in cash, subject to customary adjustments for this type of transaction. The Buyer delivered into escrow a deposit of $21,000,000 in connection with the execution of the Purchase and Sale Agreement. The transaction, which has an effective time of November 1, 2015, is expected to close in the second quarter of 2016, subject to certain customary closing conditions. The Purchase and Sale Agreement contains representations, warranties, covenants and indemnification customary for this type of transaction. The Purchase and Sale Agreement provides the Sellers and the Buyer certain termination rights, including if closing has not occurred by July 1, 2016 or if the downward adjustments to the purchase price pursuant to casualty losses, title defects and environmental defects, in the aggregate, exceed 10% of the base purchase price.

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