Newfield Exploration Co. (NYSE: NFX) has closed on the sale of its Granite Wash assets. As previously announced, the purchase price was $588 million (after-tax proceeds were $582 million). Proceeds will be used to call Newfield's 7-1/8% senior subordinated notes due 2018.
As a result of the sale, Newfield adjusted its 2014 production guidance and provided an estimate for its Granite Wash volumes in 2014-16. Full-year net production from Granite Wash in 2014-16 would have been 4 MMBOE, 3.1 MMBOE and 2.7 MMBOE, respectively. Over the three-year period, production from the Granite Wash would have been two-thirds natural gas. Adjusted for the sale's closing date, 2014's net production impact is expected to be 1 MMBOE.