Clayton Williams Energy Announces Agreement to Sell Giddings Area Assets for $400 Million and Adds Patrick Cooke as COO
24 Octubre 2016 - 3:10PM
Business Wire
Transaction Provides Capital to Strengthen
Balance Sheet and Enhance Growth, and Positions Company as a Pure
Play Permian Producer
Senior Management Additions Reflect
Commitment to Best-in-Class Execution
Clayton Williams Energy, Inc. (the "Company") (NYSE: CWEI)
announced that it has entered into a definitive purchase and sale
agreement with a third party to sell substantially all of the
Company's assets in the Giddings Area in East Central Texas for a
sale price of $400 million. The sale is subject to customary
closing conditions and adjustments. The Company expects to close
the sale in December 2016 and use the proceeds from the sale to
fund development in the Delaware Basin and repay a portion of its
outstanding indebtedness.
The properties being sold produced an average of approximately
3,900 barrels of oil equivalent (BOE) per day (80% oil) for the
quarter ended September 30, 2016 and accounted for approximately
9.7 million BOE of proved reserves as of September 30, 2016.
The sale transaction is another major step in the Company’s
dramatic transformation since the beginning of 2016 and provides
the following benefits:
- Strengthens the Company’s balance sheet
and liquidity
- Transitions the Company into a pure
play Permian Basin development company
- Enhances the Company’s ability to focus
on the efficient development of approximately 70,000 net acres in
the southern Delaware Basin
- Enables the Company to re-deploy
capital to higher returning projects
- Increases the Company’s flexibility to
accelerate capital investment and create incremental shareholder
value
The Company also announced effective October 31, 2016, Patrick
G. Cooke will join the Company as Senior Vice President and Chief
Operating Officer. For the past four years, Mr. Cooke has served in
various management capacities with Noble Energy, his most recent
position being Texas Business Unit Manager where he had direct
management responsibilities over Noble’s Delaware Basin assets.
Prior to that, Mr. Cooke served in various capacities with BP
America, including as Operations Manager for the Thunder Horse
platform in the Gulf of Mexico.
Both the addition of Mr. Cooke and the previously announced hire
of Jaime R. Casas will continue to strengthen the Company’s
management team. Mr. Casas joined the Company as Senior Vice
President and Chief Financial Officer of the Company on October 1,
2016. Prior to joining the Company, Mr. Casas served as Vice
President and Chief Financial Officer of the general partner
of LRR Energy, L.P., a publicly traded exploration and production
master limited partnership for four years. From 2009 to 2011,
Mr. Casas served as Vice President and Chief Financial Officer of
Laredo Energy, a privately held oil and gas company. Prior to that,
Mr. Casas worked in the investment banking divisions at Credit
Suisse and Donaldson, Lufkin & Jenrette for eleven years.
“I would like to thank all of our Giddings Area employees for
their service and dedication, and for building and developing a
quality asset,” said Mel Riggs, President of Clayton Williams
Energy. “We are pleased to welcome Patrick and Jaime to our
executive team. Both are extremely qualified and have the specific
experience we need to help us drive growth and create value for our
shareholders. We also express appreciation to Mike Pollard, our
former CFO, for his significant contributions to our Company over
the past 23 years.”
Goldman Sachs & Co. served as exclusive financial advisor
and Vinson & Elkins served as legal advisor to the Company on
the transaction.
Clayton Williams Energy, Inc. is an independent energy company
located in Midland, Texas.
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. All statements, other
than statements of historical or current facts, that address
activities, events, outcomes and other matters that we plan,
expect, intend, assume, believe, budget, predict, forecast,
project, estimate or anticipate (and other similar expressions)
will, should or may occur in the future are forward-looking
statements. These forward-looking statements are based on
management's current belief, based on currently available
information, as to the outcome and timing of future events. The
Company cautions that its future natural gas and liquids
production, revenues, cash flows, liquidity, plans for future
operations, expenses, outlook for oil and natural gas prices,
timing of capital expenditures and other forward-looking statements
are subject to all of the risks and uncertainties, many of which
are beyond our control, incident to the exploration for and
development, production and marketing of oil and gas.
These risks include, but are not limited to, the possibility of
unsuccessful exploration and development drilling activities, our
ability to replace and sustain production, commodity price
volatility, domestic and worldwide economic conditions, the
availability of capital on economic terms to fund our capital
expenditures and acquisitions, our level of indebtedness, the
impact of the current economic recession on our business
operations, financial condition and ability to raise capital,
declines in the value of our oil and gas properties resulting in a
decrease in our borrowing base under our credit facility and
impairments, the ability of financial counterparties to perform or
fulfill their obligations under existing agreements, the
uncertainty inherent in estimating proved oil and gas reserves and
in projecting future rates of production and timing of development
expenditures, drilling and other operating risks, lack of
availability of goods and services, regulatory and environmental
risks associated with drilling and production activities, the
adverse effects of changes in applicable tax, environmental and
other regulatory legislation, and other risks and uncertainties are
described in the Company's filings with the Securities and Exchange
Commission. The Company undertakes no obligation to publicly update
or revise any forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20161024006449/en/
Clayton Williams Energy, Inc.Patti Hollums,
432-688-3419Director of Investor
Relationscwei@claytonwilliams.comwww.claytonwilliams.comorJaime
R. Casas, 432-688-3224Chief Financial Officer
Williams (CLAYTON) Energy, Inc. (NYSE:CWEI)
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