Revenir Energy Inc., formerly Legacy Reserves Inc., concludes
its strategic asset monetization, selling its remaining operated
assets on May 15th, 2024. The Company
will now proceed to wind up its remaining business.
DENVER, June 18,
2024 /PRNewswire/ -- Revenir Energy Inc., formerly
known as Legacy Reserves Inc., announces the substantial conclusion
of its strategic process to monetize the Company's oil and gas
assets and return capital to its shareholders. This process reached
its conclusion with the sale of the Company's remaining operated
assets in the Northern Midland Basin on May
15th.
Following its emergence from bankruptcy in late 2019, the
Company brought in a new management team led by Rick Betz (CEO), the co-founder and former CEO
of Resolute Energy, Michael Stefanoudakis (CFO), Michael Rumon (SVP – Technical Services), and
Doug Dietrich (SVP – Operations).
The Revenir team was expanded to include senior professionals with
diverse experiences across many basins and technical competencies.
The change was intended to provide the Company with a fresh
perspective and a strategy reset for its post-restructuring
future.
Under the direction of this new leadership team, Revenir
underwent a strategic transformation with an increased focus on
creating shareholder value, reducing debt, and ensuring long-term
corporate sustainability. Operationally, Revenir evolved from a
geographically dispersed low-margin production-oriented operator
with approximately 12,000 wells spanning 9 states, to an
unconventional-focused operator with over ten years of high-quality
horizontal inventory in some of the premier basins in the onshore
U.S.
As a result of a thorough assessment of its portfolio, Revenir
began monetizing its non-core assets to capitalize on growth
opportunities around its existing footholds in the Midland Basin,
the Delaware Basin, and the East
Texas Haynesville to establish development positions and enhance
the marketability of its core assets. This initial non-core process
resulted in the divestment of over 10,000 wells and the exit from
operations in 7 states.
In East Texas, Revenir doubled
its Haynesville and Middle Bossier development position to 34,000
net acres through organic leasing and acquisitions. In the same
period, the Company drilled 13 wells with peak rates of 22,000 to
28,000 mcf/d resulting in a production increase from 15 Mmcf/d to
over 100 Mmcf/d. This enhanced acreage footprint combined with the
de-risking of the resource potential through development resulted
in the successful sale of the asset in October 2023.
In the Permian Basin, Revenir focused its growth and development
strategy on core areas of the northern Midland and Delaware basins. The Delaware Basin position, concentrated in
Lea County, NM, was expanded to
establish a developable leasehold position of 6,000 net acres of
stacked Bone Spring and Wolfcamp inventories. These efforts
resulted in the successful sale of the asset in November 2023.
In the Midland Basin, Revenir executed over 100 transactions and
organically leased to establish a 25,000 net acre position as an
early entrant into the Dean play fairway on the Martin/Dawson
County line. Revenir drilled 25 wells, with peak rates of
1,400 to 1,700 boe/d, establishing a new, highly economic
development area within the Midland Basin. The growth,
consolidation, and development execution of these assets culminated
in the divestiture of the Company's position in two transactions,
capping Revenir's successful exit of all operated assets on
May 15, 2024.
Cumulatively, the Company completed over 20 successful
dispositions for gross proceeds of over $1.2
billion. During this process, the Company returned over
$630 million to shareholders and
amortized in excess of $700 million
in liabilities. Revenir will now focus exclusively on winding up
its affairs.
As Revenir closes the chapter on its successful turnaround and
strategic exit from the market, the Company expresses gratitude to
its shareholders, partners, and employees for their support and
dedication throughout this transformative journey.
The other members of the Revenir senior leadership team
consisted of:
- Erin Murphy: VP, General Counsel
& Corporate Secretary
- Taylor Thoreson: VP of Land
& Business Development
- Melinda Kessens: VP of Human
Resources & Administration
- Michael LeBaron: VP of
Production Operations
- Cory Elliott: VP of IT &
Administration
- Shaler Tate: VP &
Controller
- Matt Herzog: Director of
Engineering
- Dwight Mallory: Director of
Environmental Health & Safety
- Cyndi Tschacher: Director of
Land Administration
- Kendra Pilati: Director of
Development
Press Contact: Investor Relations, 855.534.5200,
http://www.revenirenergy.com/
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SOURCE Revenir Energy