Provident sells some U.S. assets for $345M US
Three-month trading in Provident units on the TSX.
Provident Energy Trust said Tuesday that it has sold some of the U.S. oil and gas operations it earlier deemed no longer vital to its future.
Calgary-based Provident said it will receive $345 million US from a U.S. buyer, before closing adjustments and taxes, for:
Its 22 per cent stake in BreitBurn Energy Partners L.P.Its 96 per cent interest in BreitBurn GP LLC."This sale is an important first step in Provident's strategic review process," Tom Buchanan, president and chief executive officer, said in a news release.
In February, Provident said it had done well by its investment in BreitBurn, but its ownership position had been reduced as BreitBurn raised money from other investors. "At this ownership level, we view BreitBurn as an investment rather than a strategic growth vehicle for Provident," Buchanan said.
Provident units were up 13 cents to $12.13 in in early afternoon TSX trading. The 52-week range is $8.80 to $12.99.
The buyer, BreitBurn Energy Partners L.P., will take over Provident's interests in crude oil and natural gas reserves in the Los Angeles Basin in California, the Antrim Shale in Michigan, the Wind River and Big Horn Basins in central Wyoming, the Permian Basin in West Texas, the Sunniland Trend in Florida, and the New Albany Shale in Indiana and Kentucky.
Provident is still looking for a buyer for its remaining U.S. oil and gas assets, a 96 per cent interest in BreitBurn Energy Company L.P. known as Devco. Devco owns crude oil reserves located in Los Angeles, Orange and Santa Barbara Counties in California.
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