Western Gas Resources Completes Sale of Black Lake Unit to EXCO Resources

Western Gas Resources, Inc. has successfully completed the sale of its 69% interest in the Black Lake Unit, including processing and treating facilities, to EXCO Resources, Inc. for $7.8 million. The transaction is expected to result in a pre-tax loss of approximately $6.5 million, or $0.13 per share of common stock, in the fourth quarter of 1999. Proceeds from the sale will be used to reduce debt and invested in new growth areas for Western Gas Resources.

Key Takeaways:

• Western Gas Resources sold its 69% interest in the Black Lake Unit to EXCO Resources, Inc. for $7.8 million.
• The sale includes the processing and treating facilities in Louisiana.
• The transaction will result in a pre-tax loss of approximately $6.5 million, or $0.13 per share of common stock.
• Proceeds from the sale will be used to reduce debt and invested in new growth areas for Western Gas Resources.
• The sale aligns with Western Gas Resources' strategy of disposing of non-strategic assets and investing in new growth areas.
• Western Gas Resources designs, constructs, owns, and operates natural gas gathering, processing, and treating facilities in major gas-producing basins in the United States.
• The Company provides a full range of services to its customers from the wellhead to the sales delivery point, including gas gatherer, processor, producer, transporter, and energy marketer.

Statistics:

• Sale price: $7.8 million
• Company's interest in the Black Lake Unit: 69%
• Pre-tax loss: approximately $6.5 million
• Loss per share: $0.13
• Expected use of proceeds: reducing debt and investing in new growth areas

Sources:

• "Western Gas Resources, Inc. Completes Sale of Black Lake Unit" - PRNewswire, Jan. 10
• Western Gas Resources, Inc. - company website, www.westerngas.com