Houston’s Linn Energy announced a deal to sell its entire position in the Granite Wash and Cleveland plays in the Texas Panhandle and western Oklahoma to EnerVest for $1.95 billion.
EnerVest and its joint venture partner FourPoint Energy are the buyers of those assets.
Linn also has an agreement with Fleur de Lis Energy, to sell its Wolfberry positions in Ector and Midland counties in the Permian Basin for $350 million.
Proceeds from the sales are expected to be used for Linn’s $2.3 billion acquisition of assets from Devon Energy Corp. that closed in August.
“One of our goals for 2014 was to maximize value for our Midland Basin and Granite Wash assets in order to reduce the capital intensity and decline rate within our portfolio. We believe today’s announcements largely accomplish this goal. When considered in light of the accretive acquisitions and trades we’ve announced this year, we are very excited about our business as we move into 2015,” said Mark Ellis, Linn’s chairman, president and CEO.
EnerVest’s CEO said the deal means it is almost tripling its position in the Anadarko Basin.
“Once we have closed this acquisition we will have spent more than $3 billion acquiring properties in the mid-continent region together with FourPoint within the last year. We look forward to continued growth in the area,” John Walker, said in a statement.
EnerVest also announced the closing of its acquisition of HighMount Exploration and Production for $805 million, which adds to the company’s Permian position. The HighMount deal also has operations in Oklahoma. In addition, EnerVest announced the sale of its Bakken position for $205 million.
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