Constellation Energy Partners LLC (NYSE: CEP) has closed the previously announced sale of its Robinson’s Bend Field assets, which are located in Tuscaloosa County, Ala.
The sale resulted in net proceeds of approximately $55.3 million, $50.0 million of which was used to retire debt under the company’s credit facility. After the debt reduction, borrowings outstanding under the credit facility totaled $34.0 million. Adjusting for estimated transaction costs, the company maintained a cash balance of approximately $12.1 million as of Feb. 28, 2013, the date of the close. Upon closing of the sale, the borrowing base under the credit facility was immediately reduced to $37.5 million and the facility maturity date was extended to March 31, 2014. Since the third quarter of 2009, the company has reduced debt by 85%.
“This transaction marks a milestone for CEP and helps provide the financial flexibility necessary to support our efforts focused on growing our asset base by drilling for oil and pursuing consolidation opportunities in and around our Mid-Continent footprint,” said Stephen R. Brunner, president and chief executive officer of Constellation Energy Partners. “We believe these focused efforts, when combined with our reduced leverage, will have a positive impact on the way we achieve growth and, ultimately, value for our unitholders.”
The assets represent coal bed methane vertical wells and, to a lesser extent, horizontal wells.
During his tenure, Albert led the rapid development of CONSOL Energy's Marcellus shale program, becoming the second producer to get production in line from a Marcellus shale well that set a daily production record for more than six months.