Athlon Energy Reports Northern Midland Basin Acquisitions For $873 Mln Cash

(RTTNews) - Athlon Energy (ATHL) announced that it has entered into multiple definitive agreements with five unrelated third-party sellers to acquire certain producing properties and undeveloped acreage for $873 million in cash.

The properties are 100% operated and are concentrated primarily on the western side of the northern Midland Basin in Martin, Upton, Andrews, and Glasscock counties, in proximity to the company's existing operating areas.

The transactions are expected to close by or before June 2014. The acquisitions are expected to be immediately accretive to cash flow per share and earnings per share as well as net asset value.

Athlon plans to fund the acquisitions with a combination of borrowings under its existing revolving credit facility and equity and debt capital markets transactions. The company expects its revolving credit facility to increase from $525 million to $1 billion as a result of additional proved reserves added through its drilling program and 2014 acquisitions.