Occidental Petroleum Corp. (NYSE:OXY) has reached a definitive agreement to sell its Hugoton Field assets to an undisclosed buyer for pre-tax proceeds of $1.4 billion.
The Hugoton Field properties comprise interests in more than 1.4 million net acres spanning southwest Kansas, the Oklahoma panhandle, and eastern Colorado. Occidental’s average net production from the Hugoton Field properties in 2013 was approximately 110 million cubic feet equivalent per day, of which approximately 30% oil.
Occidental anticipates the transaction will be completed by April 30. The company expects to report a gain on the sale. Proceeds from this transaction will be used to partially fund the announced increase to its share repurchase program.