Allegheny Technologies Inc. has completed the sale of a portion of its oil and gas rights in Eddy County, New Mexico, to an undisclosed buyer. ATI also agreed to sell the remaining portion of these rights to the same buyer.
ATI expects the agreements to generate more than $90 million in pretax income and cash.
The Pittsburgh-based manufacturer of specialty materials and complex components initially acquired the oil and gas rights when Allegheny Ludlum merged with Teledyne Inc. to form ATI. The land was sold, but ATI retained its underlying oil and gas rights.
“We continue to leverage the sale of non-core assets to increase cash available to fund ongoing balance sheet improvement initiatives,” CEO Robert S. Wetherbee, said in a statement. “We remain focused on our balance sheet and intend to make significant progress on both pension funding and debt reduction over the next 12 months.”