ACQUISITIONS, DIVESTITURES AND OTHER

3 Months Ended

Mar. 31, 2017

ACQUISITIONS, DIVESTITURES AND OTHER

ACQUISITIONS, DIVESTITURES AND OTHER

NOTE 6ACQUISITIONS, DIVESTITURES AND OTHER

In February 2017, we divested non-core assets resulting in $32 million of proceeds and a $21 million gain.

In February 2017, we entered into a joint venture with BSP under which BSP will invest up to $250 million, subject to agreement of the parties, to be used to develop certain of our oil and gas properties in exchange for our contribution of a net profits interest (NPI) in existing and future production from such properties.  If BSP receives cash distributions equal to a predetermined threshold return, the NPI reverts to us.  BSP contributed its initial commitment of $50 million in the first quarter of 2017.  Approximately $47 million remained in cash and cash equivalents at March 31, 2017 and was designated to be used for capital investments related to this joint venture.  Our consolidated financial statements reflect this joint venture as a noncontrolling interest.

In April 2017, we entered into a joint venture with Macquarie Infrastructure and Real Assets Inc. (MIRA) under which MIRA will invest up to $300 million, subject to agreement of the parties, to develop certain of our oil and gas properties in exchange for a 90% working interest in the related properties.  MIRA will fund 100% of the development cost of such properties.  If MIRA receives cash distributions equal to a predetermined threshold return, our working interest reverts to 75%.  MIRA initially committed $160 million, which is intended to be invested over two years.