ACQUISITIONS, DIVESTITURES AND OTHER

6 Months Ended

Jun. 30, 2017

ACQUISITIONS, DIVESTITURES AND OTHER

ACQUISITIONS, DIVESTITURES AND OTHER

NOTE 6        ACQUISITIONS, 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 Benefit Street Partners (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 in its entirety.  BSP contributed $50 million in the first quarter of 2017 and $50 million in July 2017.  Approximately $2 million is included in cash and cash equivalents at June 30, 2017, which was designated for distribution to BSP.  Our consolidated financial statements reflect the full operations of this joint venture, with the net income of the joint venture being reported 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.  Our 10% working interest reverts to 75% if MIRA receives cash distributions equal to a predetermined threshold return.  MIRA initially committed $160 million, which is intended to be invested over two years.  Of the committed amount, MIRA contributed $8 million for drilling projects in the second quarter of 2017, with additional funding expected during the course of the year and in 2018.  Our consolidated financial statements reflect only our working interest share in this joint venture.