Berry Petroleum Company, LLC today announced that the Company closed on the sale of its interests in the Hugoton natural gas field, located primarily in Kansas, effective July 31, 2017. The sale was to an undisclosed buyer.
The Company used the proceeds from the Hugoton sale to close the previously announced purchase of the Kern County, California, South Belridge Hill asset, also effective July 31, 2017. With the close, Berry owns an 100% working interest in the Hill, a strategic asset within the company’s California portfolio.
Berry CEO Trem Smith said, “We are pleased to have completed the disposition of this non-core asset as it provides Berry with numerous opportunities for growing our western United States asset base, as exemplified by the Hill acquisition. In addition, the simultaneous closings allowed Berry to complete the transaction as a 1031 tax-deferred exchange permitting Berry to leverage its cash flow.”
The Company also has entered into a new $1.5 billion reserve based facility with an initial borrowing base of $500 million, effective July 31, 2017. The new facility replaces the Company’s existing facility. The maturity date of the new facility will be July 29, 2022.
Houlihan Lokey acted as financial advisor to Berry and Norton Rose Fulbright US LLP acted as legal counsel to Berry during the transactions.