PDC Energy Closes $250 Mln Sale Of Marcellus Assets

(RTTNews) - PDC Energy Inc (PDCE) Wednesday closed the sale of its fifty percent interest in PDC Mountaineer LLC ("PDCM"), a Marcellus Joint Venture for $250 million.

PDC's net pre-tax proceeds were about $190 million after repayment of its share of JV debt and other working capital and other adjustments and fees, and subject to customary post-closing adjustments. The proceeds were comprised of about $150 million cash and a $40 million note from the buyer.

The buyer also assumed PDC's share of the related firm transportation obligations as well as PDC's share of certain PDCM natural gas hedging positions.

The assets produced about 26 million cubic feet equivalent of natural gas per day net to PDC in the second quarter of 2014 with estimated proved reserves net to PDC of 240 billion cubic feet as of December 2013.

In addition, PDC announced its borrowing base increased to $700 million from $450 million following the recently completed semi-annual redetermination of its revolving credit facility. The company elected to maintain its commitment level at $450 million at this time since it expects to be minimally drawn on its revolver at year-end 2014 in part due to the proceeds from the sale its interest in the PDCM JV.