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Harvest reviews options, including sale
Posted on Monday, 16 September 2019 13:47
Harvest Oil & Gas has kicked off a strategic review after completing a disposal of assets in the Barnett Shale and in the Anadarko Basin and SCOOP/STACK for a total USD 68.90 million.
The Texan independent hydrocarbon production and exploration company has hired Intrepid Partners to help weigh options, such as a divestiture of some, or all, of its remaining properties.
Alternatives on the cards may include a potential sale of the group or a merger, though there is no guarantee the evaluation would result in one or more transactions.
It will also review ways to reduce its overall cost structure to “more closely align with the pro forma asset base after the Barnett and Mid-Continent divestitures”.
Harvest is quoted on the OTCQX marketplace and is engaged in the efficient operation and development of onshore oil and gas properties in the continental US.
In July, the group announced plans to sell “substantially all of its interests in the Barnett Shale” to an undisclosed buyer for USD 72.00 million; the assets averaged 55.60 million cubic feet of gas equivalent per day in the first three months of 2019.
Separately, it entered into an agreement to hand over oil and gas properties in the Mid-Continent area for USD 6.50 million, subject to purchase price adjustments.
Today, Harvest said the deals were downwardly adjusted to USD 63.50 million for the Barnett fields and USD 5.40 million for the assets located in Anadarko Basin and SCOOP/STACK.
It wants to look into ways to return net proceeds from these sales to shareholders, which could include dividends, distributions or buybacks.
Zephyr, the M&A database published by Bureau van Dijk, shows 347 deals targeting the US oil and natural gas sector have been announced in 2019 to date.
The largest is currently the USD 57.00 billion acquisition of Anadarko by Occidental Petroleum, which derailed Chevron’s own USD 50.00 billion plans to acquire one of the world’s largest independent exploration and production companies.
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