Dallas, Texas 06/26/2015 (Financialstrend) – Rex Energy Corporation (NASDAQ:REXX) has struck a deal with American Water Works Company Inc (NYSE:AWK) to sell its Keystone Clearwater Solutions. As a result, the transaction will involve $130 million including the debt component. Once the acquisition is completed, Keystone will function as an independent and separate subsidiary of American Water. The companies expect the transaction to close in July.
Development Of Assets
Rex Energy Corporation (NASDAQ:REXX) said that the sale of Keystone would offer some flexibility in the development of its core assets, especially in the Appalachian Basin. The company expects to get about $66 million after taxes and adjustments.
On the other hand, American Water Works Company Inc (NYSE:AWK) expects the acquisition to improve its capacity to offer additional water solution services to the shale firms. The company, as well as, the Keystone Clearwater provides environmentally responsible and safe manner. Keystone Clearwater was established in 2009 and was catering the customers need to the shale gas industry.
Management Comments
Rex Energy Corporation (NASDAQ:REXX)’s Keystone founder and CEO, Ned Wehler, said that he is looking forward to a better future in association with American Water Works Company Inc (NYSE:AWK). He said that the commitment, safety, environmental protection of American Water is also in line with the philosophy of Keystone. Therefore, he said that he was excited about the deal. He will continue to head the organization.
American Water Works Company Inc (NYSE:AWK)’s President and CEO, Susan Story, does not find any issues since both the companies align on almost all the parameters. That is in respect of values, focus, and the infrastructure. He said that the company will continue to leverage the knowledge and capability of the Keystone employees. He complimented them for building a successful organization. He said that the acquisition supports its growth tactics to develop complementary businesses. There is every opportunity to improve the ability to offer additional water solutions wherever needed.
