The Mexico-based holding company Alfa announced that its Newpek LLC, a Texas-based company with operations in Oklahoma announced it has bailed out of Texas. The company divested all assets in Texas including its offices and the divestiture includes the firm’s wells and leases in the Eagle Ford Shale and Edwards Shale.
At the close of 2Q20, the company had a total of 591 wells connected to sales.
This transaction has an implied value of US $88 million for Newpek, resulting from the cancellation of its obligations. Hence, Alfa will recognize an extraordinary gain of US $58 million in 3Q20 EBITDA. Details of the agreement were not disclosed.
The transaction has an implied value of $88 million for Newpek, resulting from the cancellation of its obligations in joint venture and operating contracts reported HART Energy.
Newpek’s exit from the Lone Star State is part of a strategy being pursued by its parent company, Mexican conglomerate Alfa, to unlock value via its fully independent subsidiaries through the divestiture of oil and gas assets outside Mexico.
In a release on Aug. 18, Alfa said Newpek transferred its assets in Texas to Ensign Operating LLC and Reliance Eagleford Upstream Holding in exchange for a complete cancellation of its obligations. Further details of the agreement were not disclosed.
Newpek also closed its administrative office in Irving, Texas, and moved remaining functions to Monterrey, Mexico, according to the company release.
Source: ALFA
