Allegheny Technologies Incorporated recently announced that it has completed the sale of a portion of its oil and gas rights in Eddy County, New Mexico and has reached an agreement to sell the remaining portion of these rights, both to the same undisclosed buyer. The completed Q2 2019 sale and the definitive sales agreement, anticipated to close in Q3 2019, are expected to generate over USD90 M in pretax income and cash for ATI.
These oil and gas rights were initially acquired by the company in 1972 along with land purchased by Teledyne, Inc., which later became part of ATI. The land was subsequently sold, with the company retaining its underlying oil and gas rights.
ATI’s Q2 2019 results will include pretax non-operating income and cash flows of USD29 M and it is expected that Q3 2019 results will include approximately USD62 M of pretax non-operating income and cash flows related to these oil and gas rights sales.
