Southwestern Energy Company signed a definitive agreement Monday with a private buyer to sell conventional oil and gas assets in East Texas and the Arkoma Basin for $218 million.

The company has not disclosed a list of the assets included in the deal.

Houston-based Southwestern Energy said proceeds from the transaction will be used to reduce its debt.

“Combined with the already announced divestiture of our northeast Pennsylvania gathering system, this transaction achieves the net divestiture proceeds targeted as part of the acquisition financing plan,” Southwestern Energy CEO and president Steve Mueller said.

The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2015.

“With the acquisition financing now complete, we will continue our focus on extracting the long-term value from our premier assets for our shareholders for years to come,” Mueller said.

Last week Southwestern Energy sold gas gathering assets in northeastern Pennsylvania to San Antonio-based Howard Midstream Energy Partners for $500 million.


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