Summary
EXPAND ENERGY Corp (EXE) has filed an 8-K report detailing several significant announcements made between January 3rd and January 9th, 2012. The most impactful event for investors is the completion of a joint venture in the Utica Shale with Total E&P USA, Inc. ("Total"). Under this agreement, Total acquired a 25% interest in approximately 619,000 net acres, a significant portion of which was contributed by EXE. This transaction provides EXE with substantial capital, including immediate cash and a future drilling carry, which is expected to aid in its long-term debt reduction goals. The filing also includes preliminary 2011 operational results and sets the stage for the release of the Company's fourth quarter and full-year 2011 financial results and the associated conference call.
Key Highlights
- 1Completion of a joint venture with Total E&P USA, Inc. for Utica Shale acreage.
- 2Total acquired a 25% interest in approximately 619,000 net acres in the Utica Shale.
- 3EXPAND ENERGY Corp received approximately $2.03 billion in combined value from the joint venture.
- 4The transaction includes $610 million in cash at closing and $1.42 billion via a drilling and completion cost carry expected by year-end 2014.
- 5This joint venture is expected to contribute to the Company's long-term debt reduction goals outlined in its 30/25 Plan.
- 6Announcement of preliminary 2011 operational results, indicating progress on production and debt reduction targets.
- 7Notification of the date for the release of Q4 and full-year 2011 financial and operational results, along with conference call details.