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Atlas Resource Partners, L.P. Message Board

  • rrb1981 rrb1981 Jan 18, 2013 10:55 PM Flag

    PXP Haynesville Divestiture

    Looks like PXP may be divesting their Haynesville holdings. Not quite sure this is a package that will end up in an MLP. Most of the wells should be fairly flat..with many of them being 2 to 3 yrs old...and keeping in mind that the Haynesville wells exhibit declines of 80-90% in Yr 1.

    Plains really got taken to the cleaners by Chesapeake on this deal a few years ago, and from what I saw, PXP is hoping to get $1 billion, a third of what they paid just a few years ago.

    Would be hilarious to see them divest the production and acreage right before gas prices rebound...

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    • as long as we dont get hosed
      dreiser139

      • 1 Reply to dreiser139
      • I woulnd't worry about us pursuing these assets. It is probably too large for us to go after and even then, I don't think this is what ARP is looking to acquire. Not a bad asset package and I wouldn't be disappointed if they bought it, but the price range of $1 billion likely puts it out of range.

        As for being hosed, I would note that prices are down, and E&P companies are looking to raise money to further their pursuit of liquids/oil. This likely means good deals, not bad.

        The PXP package would be on the order of 170,000 mcf/d and has around 11,000 future drilling locations, though I am uncertain as to how many are HBP. This acreage is JV'd with Chesapeake,

 
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