Ultra Petroleum (UPL) announced its acquisition of Pinedale assets from Royal Dutch Shell (NYSE:RDS.A) in consideration of $925 million in cash along with some of its Marcellus assets. The deal will close in the third quarter of this year and will be financed by a new debt issuance.
This deal is largely positive for Ultra as it will help the company focus on its core profitable region where it has significant contracted takeaway capacity. The deal increases Ultra's net proved reserves by 1.8 Tcfe and increases PV-10 by $1.8 billion. This deal also boosts company operated production from 62% to 82%, a big positive as UPL's costs are the lowest in the industry.
Original article found here.
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