Citizen Energy to Acquire Blue Mountain Midstream for $111 Million
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Riviera Resources has signed a definitive agreement to sell its wholly owned subsidiary, Blue Mountain Midstream to Citizen Energy in an all cash transaction valued at approximately $111 million. The company expects the transaction will close early in the fourth quarter of 2020.
“This transaction is the culmination of our extensive review of strategic alternatives for Blue Mountain. Over the past twelve months, the company has spent extraordinary time and effort engaging with several counterparties in an effort to maximize the sale value of Blue Mountain. Given the challenging macro-environment, we are pleased with this result. Consistent with past decisions, we expect to find ways to use the proceeds to return capital to shareholders,” said David Rottino, president and chief executive officer of Riviera.
Previously, Riviera Resources signed definitive agreements to sell its interest in properties located in North Louisiana, expected to close in the third quarter of 2020, and interests in certain properties located in the Anadarko Basin, expected to close in the fourth quarter of 2020. The company also has previous plans to sell its remaining upstream assets, primarily located in the Mid-Continent region, with plans to close in the fourth quarter of 2020.
The company intends to evaluate the process of winding-up and of returning the majority of its remaining capital to its shareholders as efficiently as reasonably possible, at which point the Company would completely exit the upstream and midstream business, in the event this sale and other contemplated asset divestitures are completed. This evaluation will be dependent upon an analysis of the net cash available for distribution to its stockholders and the amount of net cash that must be retained to satisfy the company’s obligations under the dissolution procedures pursuant to Section 275 of the Delaware General Corporate Law.
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