Origin Energy
(ASX:ORG) has inked a deal to sell its upstream oil and gas business, Lattice Energy to Beach Energy
(ASX:BPT) for $1.6 billion.
As part of the sale, Origin has firmed up access to a significant portion of Lattice Energy’s future east coast gas production.
The transaction is effective at the beginning of this financial year (1 July 2017) subject to a number of conditions.
The proceeds will go towards reducing Origin’s net debt to below $7 billion by 30 June 2018. Moreover it also simplifies its business and will also improve shareholder returns.
Shares in Origin Energy
(ASX:ORG) closed up 0.81 per cent higher yesterday to $7.45.
