8.3 C
New York
Thursday, March 28, 2024

Willbros Announces Sale of Certain Downstream Oil & Gas Assets; Terms Undisclosed; Will Pay Down $25M Term Loan

Courtesy of Benzinga.

Willbros Group, Inc. (NYSE: WG) announced today that it has sold certain assets and operations of its Oil & Gas Segment’s downstream businesses to a privately held company. The sale includes the union refinery maintenance turnaround service line, a related fabrication facility and associated tools and equipment. The service line and fabrication facility being sold are both located near Tulsa, Oklahoma. As a result of the sale, the Company is paying down its Term Loan debt by $25 million.

Randy Harl, President and Chief Executive Officer of Willbros, said, “The sale of these downstream assets supports our stated objective to improve our operating performance and financial flexibility. By applying proceeds from this sale to reduce our debt levels, we will continue to decrease our interest expense, improve our liquidity and strengthen our balance sheet. The remaining downstream assets enable us to focus our resources on tank, terminal, heater, fabrication and related services where we have been successful and where the market provides us with significant growth opportunities.”

Willbros is a specialty energy infrastructure contractor serving the oil, gas, refining, petrochemical and power industries. Our offerings include engineering, procurement and construction (either individually or as an integrated EPC service offering), turnarounds, maintenance, facilities development and operations services. For more information on Willbros, please visit our web site at www.willbros.com.

This announcement contains forward-looking statements. All statements, other than statements of historical facts, which address activities, events or developments the Company expects or anticipates will or may occur in the future, are forward-looking statements. A number of risks and uncertainties could cause actual results to differ materially from these statements, including new legislation or regulations detrimental to the economic operation of refining capacity in the United States; the identification of one or more other issues that require restatement of one or more prior period financial statements; contract and billing disputes; the consequences the Company may encounter if it is unable to make payments required of it pursuant to its settlement agreement of the West African Gas Pipeline Company Limited lawsuit; the existence of material weaknesses in internal control over financial reporting; availability of quality management; availability and terms of capital; changes in, or the failure to comply with, government regulations; ability to remain in compliance with, or obtain waivers under, the Company’s existing loan agreements; the promulgation, application, and interpretation of environmental laws and regulations; future E&P capital expenditures; oil, gas, gas liquids, and power prices and demand; the amount and location of planned pipelines; poor refinery crack spreads; delay of planned refinery outages and upgrades and development trends of the oil, gas, power, refining and petrochemical industries; as well as other risk factors described from time to time in the Company’s documents and reports filed with the SEC. The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

Posted-In: News Asset Sales

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

Stay Connected

157,452FansLike
396,312FollowersFollow
2,280SubscribersSubscribe

Latest Articles

0
Would love your thoughts, please comment.x
()
x