By Gerrit De Vynck
EP Energy LLC, the production and exploration unit formed when Apollo Global Management LLC 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 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. 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.