Dynegy Inc. has completed the sale of its Sherman, TX-based gas processing facility to Dornick Hills Midstream Ltd., which is based in Dallas. The transaction resulted in a pre-tax gain for Dynegy of $17 million. The Sherman plant has a processing capacity of 24 MMcf/d, and “represents one of our last significant divestitures of non-core assets,” said CEO Bruce Williamson. “Consistent with our self-restructuring approach and goal of delivering value to investors, this sale was based on a decision to focus on regions and segments of our natural gas liquids business where we have a larger physical presence and greater opportunities for growth,” he said. Dynegy expects to gain $240 million from non-core asset sales this year, said Williamson. The sales have improved the company’s financial profile and reduced Dynegy’s debt, helping it maintain “a strong level of liquidity to support our ongoing natural gas liquids and power generation businesses.”

Pioneer Drilling said it will buy seven drilling rigs and related equipment from Wolverine Drilling for $28 million in cash. Wolverine, based in Kenmare, ND, owns a fleet of seven mechanical 500 to 1,000 hp rigs, capable of drilling to depths of 7,000 to 15,000 feet. Robert S. Blackford, president of Wolverine, will become Pioneer’s North Dakota division manager. The transaction will increase Pioneer’s fleet to 43 drilling rigs. “We are very excited about expanding our operations into the prolific oil and gas regions of the Rocky Mountains,” said Pioneer CEO Stacy Locke. “Wolverine has operated in the Rockies since 1994 and has a significant presence in the Williston Basin of North Dakota and Montana. Six of the seven rigs are currently working under contract and we anticipate that the fleet utilization will remain high for the foreseeable future.”

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