FORT WORTH, Texas (AP) — Independent oil and gas company Approach Resources Inc. said Thursday that it and a partner are selling a Southern Midland Basin oil pipeline to JP Energy Development LP for $210 million.
JP Energy is buying a 50-mile oil pipeline system that runs through Crockett and Reagan counties in Texas. JP Energy said Thursday that the deal will extend its reach into the Southern Midland Basin and diversify its business.
Approach will receive $108 million in proceeds from the transaction. Its partner, Wildcat Midstream Holdings, will get the remaining $102 million. The sale is expected to close late in the third quarter or early in the fourth quarter.
Approach and JP Energy are also entering a revised crude oil purchase agreement under which JP Energy will buy and transport Approach's crude oil production from Crockett and Schleicher counties in Texas.
Shares of Approach Resources, which is based in Fort Worth, Texas, rose $1.22, or 5 percent, to $25.42 in midday trading. The stock has traded between $22.24 and $32.25 over the past year.