Under the terms of the agreement announced on November 5, the Partnership acquired the oil and gas assets from EXCO for approximately $725 million of total consideration, which represents HGI’s effective equity interest of $372.5 million, $127.5 million in oil and gas properties and related assets contributed by EXCO, in each case before giving effect to preliminary closing adjustments described below, and approximately $225 million of bank debt. The net cash contributed from HGI was $348.3 million reflecting the effect of preliminary closing adjustments and the economic benefits related to the July 1, 2012 effective date.HGI has approximately a 75% equity interest in the Partnership. The Partnership will be governed by a Board of Directors of the general partner consisting of two EXCO directors and two HGI directors. EXCO will continue to operate the assets as contract operator of the properties and provide services pursuant to contract operating and administrative service agreements with the Partnership.
Harbinger Group Inc. Closes Joint Venture With EXCO Resources; Establishes New Energy Operating Partnership; New Partnership Signs Agreement To Acquire Conventional Oil And Natural Gas Assets From Affiliate Of BG Group Plc For $132.5 Million
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