Loews Corporation (NYSE:LTR) today announced that its newly-formed wholly-owned subsidiary, HighMount Exploration & Production LLC, has completed its previously announced acquisition of natural gas exploration and production assets from Dominion Resources (NYSE: D) for $4.0 billion cash. The transaction was financed with approximately $2.4 billion of cash provided by Loews Corporation and a $1.6 billion term loan by the newly-created subsidiary.
The primary properties acquired are located in the Permian Basin in Texas, the Antrim Shale in Michigan, and the Black Warrior Basin in Alabama, with estimated proved reserves totaling approximately 2.5 trillion cubic feet equivalent. These properties produce predominantly natural gas and are characterized by long reserve lives and high well completion success rates.
Loews Corporation, a holding company, is one of the largest diversified corporations in the United States. Its principal subsidiaries are CNA Financial Corporation (NYSE: CNA); Lorillard, Inc.; Boardwalk Pipeline Partners, LP (NYSE: BWP); Diamond Offshore Drilling, Inc. (NYSE: DO); HighMount Exploration & Production LLC; Loews Hotels; and Bulova Corporation.
Peter W. Keegan, 212-521-2950
Chief Financial Officer
Darren Daugherty, 212-521-2788
Candace Leeds, 212-521-2416