CNX Announces Agreement To Sell Ohio Utica JV Assets - Quick Facts

(RTTNews) - CNX Resources Corp. (CNX) announced an agreement to sell its Ohio Utica joint venture assets to Ascent Resources-Utica, LLC for net cash proceeds of approximately $400 million. The divested assets, which are owned in conjunction with Hess Corp., are located in the wet gas Utica Shale areas of Belmont, Guernsey, Harrison, and Noble counties.

CNX expects the divestiture to result in a 10 Bcfe reduction to 2018 production guidance based on Ohio wet Utica volumes previously planned between the expected third quarter 2018 close date and the end of the year. As a result, full-year 2018 production guidance is expected to be 490-515 Bcfe, compared to previous guidance of 500-525 Bcfe. CNX expects a reduction of approximately $15 million to 2018 EBITAX attributable to CNX shareholders, or $810-$835 million, compared to the previous guidance of $825-$850 million. For 2019 and 2020, the divestiture is expected to reduce total production volumes by 20-25 Bcfe and adjusted EBITDAX to CNX shareholders by $25-$35 million, for each year.

Hess Corp. CEO John Hess said, "We continue to focus our portfolio by divesting lower return, non-core assets as part of our strategy to deliver long term value to shareholders. Proceeds from this transaction will be used to invest in our higher return growth opportunities in Guyana and the Bakken and to fund the company's previously announced share repurchase program."

Hess Corp. also announced that it has decided to retain its interests in Denmark, where the company holds a 61.5 percent interest in the South Arne Field and is the operator. The company said the offers received in the sale process did not meet the its value expectations. The company said it will continue to look at strategic options for this asset.