Acquisitions and divestitures

3 Months Ended

Mar. 31, 2017

Acquisitions and Divestitures [Abstract]

Acquisitions and divestitures

Note 4. Acquisitions and divestitures

ACC divestiture. In February 2017, the Company closed on its previously announced divestiture of its ownership interest in ACC in which the Company and its joint venture partner entered into separate agreements to sell 100 percent of their respective ownership interests in ACC. After adjustments for debt and working capital, the Company received cash proceeds from the sale of approximately $803 million. After direct transaction costs, the Company recorded a pre-tax gain on disposition of assets of approximately $656 million.The Company’s net investment in ACC at the time of closing was approximately $129 million.

Northern Delaware Basin acquisition. In January 2017, the Company completed a portion of the previously announced acquisition of approximately 16,400 net acres in the Northern Delaware Basin. As consideration for this portion of the acquisition, the Company paid approximately $132 million in cash, of which $43 million was held in escrow at December 31, 2016, and issued to the seller approximately 1.9 million shares of its common stock with an approximate value of $258 million. In April 2017, the Company closed on the remainder of the acquisition. The acquisition, in its entirety, is subject to customary closing and post-closing adjustments. The purchase price allocation of this acquisition is preliminary and subject to change as the Company takes over operatorship of the acquired properties and subsequent due diligence is performed.