Riviera Resources Inc. agreed to sell its North Louisiana properties on July 28, narrowing the Houston-based company’s focus on the Midcontinent region.
According to a company release, an undisclosed buyer agreed to buy Riviera’s interest in the properties for a contract price of $26.5 million, subject to closing adjustments. The properties consist of about 100 wells located in North Louisiana with average second quarter net production of roughly 16 MMcfe/d.
Riviera formed in 2018 through a spin off of Linn Energy’s portfolio of mature, low-decline assets located throughout the U.S. Since the spinoff, though, Riviera has gradually been monetizing assets from the multibasin portfolio it inherited.
In a company release in late 2019, Riviera President and CEO David Rottino said the company had generated over $500 million in proceeds through strategic monetizations last year, returning more than $400 million of capital to its shareholders.
After closing the North Louisiana transaction, expected in third-quarter 2020, Riviera will continue to own upstream assets primarily located in the Midcontinent region. Additionally, the company owns Blue Mountain Midstream LLC, a midstream company centered in the core of the Merge play in the Anadarko Basin.
Estimated net proceeds from the sale are expected to be added to cash on Riviera’s balance sheet. The board and management will determine the use of proceeds, which consistent with past history may include a significant return of capital to shareholders, the company release said.
RBC Richardson Barr was financial adviser to Riviera and Kirkland & Ellis LLP acted as legal counsel during the transaction.
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