Sanchez Midstream Partners Closes Sale of Its Remaining Operated Oklahoma Production Assets
18 July 2017 - 8:12AM
Sanchez Midstream Partners LP (NYSE MKT:SNMP) (“SNMP” or the
“Partnership”) today announced that the Partnership has closed the
sale of its remaining operated production assets, which are located
in Oklahoma.
“The sale of our remaining operated production
assets further reduces our exposure to a price-sensitive revenue
stream and is consistent with our strategy of focusing on stable,
fee-based midstream activities,” said Gerry Willinger, Chief
Executive Officer of the general partner of SNMP. “These
Oklahoma production assets were initially offered for sale in March
2015 and are considered non-core to the business of SNMP. Since we
previously announced plans to sell the assets, they have been
excluded from the reserves used to determine the borrowing base
under our credit facility. While we anticipate that the sale
will have no impact on our borrowing base, we expect to use the
proceeds from the sale to reduce debt outstanding under our credit
facility. The reduction in debt, together with lower overhead
associated with operating the properties, improves our liquidity
position at a time when the key components of our South Texas
midstream strategy are coming together to create value for our
unitholders. These projects include our wholly-owned Seco
Pipeline, which is expected to provide dry gas takeaway capacity
from the Raptor Gas Processing Facility to premium natural gas
markets in South Texas beginning later this month.”
About the PartnershipSanchez
Midstream Partners LP (NYSE MKT:SNMP) is a publicly-traded limited
partnership focused on the acquisition, development, ownership and
operation of midstream and other energy related assets. The
Partnership has ownership stakes in oil and natural gas gathering
systems, natural gas pipelines, and a natural gas processing
facility, all located in the Western Eagle Ford in South
Texas. For more information on the Partnership, please visit
our website: www.sanchezmidstream.com.
FORWARD-LOOKING STATEMENTSThis
press release contains certain statements that are considered
forward–looking statements within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934. All
statements, other than statements of historical fact, included in
this press release are forward-looking statements. Management
cautions all readers that the forward-looking statements contained
in this press release are not guarantees of future performance, and
we cannot assure any reader that such statements will be realized
or the forward-looking events and circumstances will occur.
Actual results may differ materially from those anticipated or
implied in the forward-looking statements due to factors listed in
the “Risk Factors” section in our filings with the U.S. Securities
and Exchange Commission and elsewhere in those filings. The
forward-looking statements speak only as of the date made, and
other than as required by law, we do not intend to publicly update
or revise any forward-looking statements as a result of new
information, future events or otherwise.
PARTNERSHIP CONTACT
Charles C. Ward
Chief Financial Officer
Sanchez Midstream Partners GP LLC
(877) 847-0009
General Inquiries: (877) 847-0008
www.sanchezmidstream.com
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