Newfield Exploration to sell Texas assets for nearly $390 million

THE WOODLANDS, Texas -- Newfield Exploration has announced the signing of two separate purchase and sale agreements to divest substantially all of its assets in Texas for combined net after tax proceeds of nearly $390 million, subject to customary purchase price adjustments.

The transactions, which are expected to close in the third quarter of 2016, are subject to ordinary closing conditions. 

The transactions include Newfield's unconventional assets in the Eagle Ford shale and its conventional natural gas assets in south and west Texas. Current net daily production from the combined assets is approximately 12,700 boed, of which approximately 35% is oil. The agreement to sell the Eagle Ford package was signed with Protégé LLC. The second agreement for conventional natural gas assets in South Texas was signed with an undisclosed party.

"We continue to refine our portfolio and focus our people and capital resources on assets with high returns and a deep inventory of future drilling opportunities," said Newfield Chairman and CEO Lee K. Boothby. "Since 2009, we have generated about $3 billion in proceeds from asset sales (including today's announcement) as we transitioned to an oil company with a premium asset portfolio in onshore resource plays. Proceeds from the sale of our Texas assets will replenish our cash balance and position us for the timely acceleration of our STACK development in the future."