Sanchez Energy Corp. (SN) said Sept. 28 it has executed an agreement with its affiliate Sanchez Production Partners LP (SPP) to divest Eagle Ford midstream assets for $345 million in cash.

SPP will acquire and operate, the pipeline, gathering and compression assets located on the Western part of its Catarina asset in South Texas in Dimmit and Webb counties. The transaction is expected to close in October.

Proceeds from the divestiture further will enhance Sanchez Energy's strong liquidity position, the comany said. This is expected to enable it to pursue growth opportunities through opportunistic asset acquisitions, the acceleration of cost-efficient drilling and completion activities, and the strategic leasing of additional acreage in its core areas of operations.

Sanchez Energy previously reported that it maintained liquidity of $572 million as of June 30, which included $300 million in available capacity on its undrawn bank credit facility.

As a result of the sale of midstream assets, pro forma liquidity will increase to about $918 million, inclusive of cash on hand and the $300 million elected commitment under its undrawn revolving credit facility.

Evercore Group LLC is sole financial adviser to the board's audit committee. Richards, Layton & Finger PA served as counsel to the audit committee and Akin Gump Strauss Hauer & Feld LLP represented Sanchez Energy in connection with the negotiation for the divestiture.