Seneca Resources Exits California in Deal for Cash, Fewer Emissions

National Fuel touted the environmental benefits of the sale by its E&P segment Seneca Resources, including a 55% reduction in CO₂ equivalent emissions.

Seneca Resources Exits California in Deal for Cash, Fewer Emissions

David P. Bauer, National Fuel’s president and CEO, said Seneca’s California operations have generated substantial free cash flow and supported investment in the Appalachian Basin. (Source: Shutterstock.com)

After more than three decades in California, National Fuel Gas Co. said its E&P segment will exit the state, noting the deal would add to its financial flexibility and offer a considerable reduction in emissions.

In its May 5 earnings release, National Fuel said that its E&P arm, Houston’s Seneca Resources Co. LLC, would sell its California portfolio for up to $310 million.

It was not by coincidence that National Fuel touted the environmental benefits of the sale. In a company presentation, National Fuel said the Seneca divestiture would “significantly reduce the company’s emissions,” including a 55% reduction in CO₂ equivalent.

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Darren Barbee

Darren Barbee is senior editor for Oil and Gas Investor magazine.