Mon, Sep. 28, 10:59 AM
- Sanchez Energy (SN +4.5%) agrees to sell pipelines, gathering and compression assets in south Texas to its Sanchez Production Partners (SPP +94.6%) affiliate for $345M to shore up its cash position.
- SN is selling 150 miles of gathering lines and other pieces of infrastructure to the MLP from the Eagle Ford Shale, where SN owns 226K net acres of oil and gas land after doubling its stake a year ago when it bought properties from Royal Dutch Shell for $639M.
- In connection with the acquisition, SPP says it will recommend that its board approve a plan to begin distributions at an initial annualized rate of $1.60/unit.
Sanchez Production Partners LP is engaged in the acquisition, development and production of oil and natural gas properties (E&P properties) as well as related midstream assets. Its reserves are located in Cherokee Basin in Oklahoma and Kansas.
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