RADNOR, Pa. (AP) -- Penn Virginia Corp. said Monday that it will sell nearly all of its Eagle Ford Shale natural gas midstream assets to a newly formed affiliate of investment firm ArcLight Capital Partners LLC.
The oil and gas company anticipates gross cash proceeds of $100 million. After paying a partner, Penn Virginia anticipates net proceeds of $95 million, which it plans to use to pay for its 2014 capital expenditure plan. The sale is expected to close during the first quarter of 2014.
Penn Virginia said the deal is the first step in a series of potential sales that would reduce the company's debt, improve its liquidity and help fund its investments in oil projects.
The deal includes a natural gas gathering and gas lift system including approximately 119 miles of pipelines and associated facilities located in Gonzales and Lavaca counties in Texas.
Penn Virginia, based in Radnor, Pa., is an onshore oil and gas exploration company with a primary focus in Texas.
