W&T Offshore Inc. recently transferred producing assets in the eastern Gulf of Mexico in a transaction  with Munich Re Reserve Risk Financing Inc. that W&T CEO Tracy W. Krohn said provides the company with the dry powder needed to continue to accretively grow through “attractive producing property acquisitions.”

“We believe that market conditions in the Gulf remain very favorable for accretive acquisitions,” Krohn said in a statement on May 20. “With our further improved balance sheet, increased cash position and strong projected cash flow generation, we have positioned W&T to actively pursue opportunities and continue to deliver on our strategic vision.”

According to a company release, W&T transferred 100% of its Mobile Bay area assets and related gas treatment facilities located offshore Alabama in the eastern U.S. Gulf of Mexico to special purpose vehicles (SPVs) wholly owned by W&T. In exchange, W&T received net cash proceeds from a $215 million first-lien non-recourse term loan to the SPVs provided by Munich Re.

Already have an account? Log In

Thanks for reading Hart Energy.

Sign Up now to get unmatched coverage of the oil and gas industry’s entire landscape.

Free Access
Looking for full access? Subscribe now
Offshore