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Eclipse Expecting Blue Ridge Acquisition to Resolve Stock Delisting Notice

Eclipse Resources Corp. said this week it has again received a delisting notice from the New York Stock Exchange (NYSE) because the common stock price has fallen below the continued listing standard.

The small-cap company last received a delisting notice in February 2016 and regained compliance shortly thereafter. NYSE requires that the average closing price of a listed company’s common stock be at least $1.00/share over a 30-day trading period. Eclipse has six months from the date of the NYSE notice to bring its share price and 30-day trading average back above $1.00.

The notice comes as the company prepares to close its acquisition of Appalachian pure-play Blue Ridge Mountain Resources Inc. (BRMR). Eclipse said it’s planning a 15-to-1 reverse stock split just before the transaction closes this quarter, which should help it regain compliance.

Eclipse and BRMR agreed to merge last August. The combined company would produce more than 500 MMcfe/d and have 227,000 net undeveloped acres in Ohio, Pennsylvania and West Virginia.

The merger was announced after Eclipse launched a process to explore strategic alternatives aimed at boosting shareholder value. Since it went public in 2014, the company has at times been strapped for cash. It cut spending early last year and reduced annual guidance as a result. Eclipse produced 346.4 MMcfe/d in 3Q2018, a decline from 353 MMcfe/d in the year-ago period.

At a 52-week low of 74 cents/share, Eclipse’s stock was trading around $1.10 on Wednesday afternoon.

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