Penn Virginia closes sale of East Texas assets

Penn Virginia Corp. (NYSE: PVA) has closed the sale of its East Texas assets. The net cash proceeds from the sale were approximately $74 million, including customary closing adjustments.

Pro forma for the East Texas divestiture, as of June 30, Penn Virginia’s total debt ratio and credit exposure ratio, defined as all outstanding borrowings under its revolving credit facility (Revolver) plus any outstanding letters of credit, were 3.6 times and 0.4 times trailing 12 months' pro forma adjusted EBITDAX, respectively, with $138 million outstanding under the company’s revolving Revolver and financial liquidity of $259 million. This compares to total debt and credit exposure ratios of 3.7 times and 0.6 times, respectively, with $212 million outstanding under the Revolver and financial liquidity of $215 million as of June 30.

The divestiture was already given effect in Penn Virginia’s most recent 2015 guidance.

Penn Virginia is an independent oil and gas company engaged in the exploration, development, and production of oil, NGLs, and natural gas in various domestic onshore regions of the US, with a primary focus in the Eagle Ford shale play in south Texas.

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