Linn Energy Inc.’s board has unanimously approved spinning off Riviera Resources LLC, an upstream and midstream outfit with assets in several unconventional regions that initially owould include Blue Mountain Midstream LLC.
Houston-based Linn said Tuesday the spinoff should occur by Aug. 7. For each share of common stock held on Aug. 3, Linn stockholders are to receive one share of Riviera. Both companies will be traded over-the-counter (OTC), Riviera under the “RVRA” ticker and Linn, which is traded OTC, under “LNGG.”
Riviera would initially hold Linn’s legacy upstream assets in the Hugoton Basin in Kansas, the Drunkards Wash Field in Utah, the Arkoma Basin, Michigan, Illinois, East Texas and North Louisiana. It also would have assets in the northwestern part of Oklahoma’s Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties, aka the STACK, where Riviera is to retain more than 100,000 acres. Riviera would also include Blue Mountain.
Following the spinoff, Linn would own a 50% equity interest in Roan Resources LLC, a pure play exploration and production (E&P) company focused on the Midcontinent. Roan is developing Oklahoma’s myriad basins within the Anadarko Basin — specifically, the Merge prospect, the SCOOP (aka the South Central Oklahoma Oil Province) and STACK. Roan Holdings LLC, the successor to Tulsa-based Citizen Energy II LLC, will hold the remaining 50% stake in Roan.
Linn had initially proposed separating into three standalone companies — Roan, Blue Mountain and a third entity dubbed “NewCo,” which was to include some E&P and midstream assets — but it revised its plans in April. That same month, CEO Mark Ellis and Linn’s entire management team announced plans to retire once the spinoff was completed.
© 2021 Natural Gas Intelligence. All rights reserved.
ISSN © 2577-9877 | ISSN © 2158-8023 |