Editor's note: This is a developing story. Check back for updates.

Halcón Resources Corp. (NYSE:HK) said it has entered into a definitive agreement to sell all of its water infrastructure assets across the Delaware Basin to a private company for up to $325 million in cash, subject to customary closing conditions and adjustments.

$200 million of the purchase price is payable in cash upon closing, with an additional $125 million payable on a deferred basis over a five year period based on meeting certain annual incentive thresholds.

The effective date of the transaction is October 1, 2018. The transaction is expected to close before December 31, 2018. Assets included in the transaction include water gathering lines, saltwater disposal wells, freshwater wells and water recycling facilities. There are no drilling or throughput commitments associated with the transaction.

None of Halcón's oil and gas infrastructure assets are included in the sale. These assets include more than 40 miles of gas gathering pipelines, more than 30 miles of oil gathering pipelines in addition to approximately 7,000 horsepower of compression and significant gas treating infrastructure and facilities.

Floyd C. Wilson, Halcón's Chairman and CEO commented "This transaction significantly bolsters our liquidity and improves our leverage profile. The $200 million cash payment represents a significant premium to how the market currently values Halcón. It also reduces operating risk by transferring our future water handling needs to a reputable water-focused midstream operator, while retaining our less mature oil and gas infrastructure assets for future upside appreciation."

Scotiabank and BMO Capital Markets are advising Halcón on the divestiture of its water infrastructure assets.

Onshore