History
Riviera Resources, spun out of Linn Energy, spent 2018-2020 returning cash to shareholders, selling its Hugoton, Louisiana, Oklahoma and midstream assets, then adopted a Plan of Liquidation.
2018-2019: Buybacks and a helium financing
Riviera Resources, a Houston company spun out of Linn Energy, began the period focused on returning cash to shareholders. In September 2018 it announced a tender offer (an offer to buy shares directly from holders) for up to $100 million of its stock at $22.00 per share, about 6.0% of shares outstanding. Holders of about 55%, along with all directors and officers, said they would not tender. A separate $100 million buyback program, of which about $7.5 million had been used, was suspended while the offer ran. In June 2019 it announced a further tender offer of up to $40 million, at a premium to the market price. The filings seen do not show the results of either offer, though shares on issue fell from 69,774,073 at the end of 2018 to 58,168,756 at the end of 2019.
In March 2019 Riviera raised about $82 million by selling a limited-term helium royalty on certain Kansas Hugoton wells to its own subsidiary, Mayzure, which issued 5.16% senior secured notes. Riviera kept the oil, gas and NGL production from those wells.
2019-2020: Selling the assets
In August 2019 Riviera agreed to sell its remaining Hugoton Basin assets, including Mayzure, for $295 million. In September 2019 its lenders cut the credit facility's borrowing base to $90 million, cut interest by 0.5% and extended maturity to August 4, 2021. The Hugoton sale to Scout Energy Group V closed on November 22, 2019 for about $283 million net. The board declared a one-time distribution of $4.25 per share, about $260 million, paid December 12, 2019. A $4.5 million sale of Drunkards Wash interests in the Uinta Basin was also signed, though the filings do not confirm it closed.
In June 2020 a Fifth Amendment to the credit agreement cut the borrowing base to $30.0 million and raised the interest margin by 0.25%. North Louisiana assets were sold in September 2020, and Oklahoma Mid-Continent interests were sold on October 1 for about $13 million net.
2020: Liquidation
On October 8, 2020 Riviera closed the sale of Blue Mountain Midstream to Rheinbund, LLC for about $111 million, leaving about $35 million in net cash after repaying the Blue Mountain credit facility and costs. The company said it had exited midstream. Shareholders approved a Plan of Liquidation on October 12, and the board approved a $1.35 per share distribution of about $79 million. The company expected between $0 and $40 million to remain for shareholders after its obligations were met. It planned to file for dissolution and stop trading on OTCQX by December 31, 2020. The CFO and two directors were leaving, and the COO planned to leave. Sale of the remaining upstream assets, mainly Mid-Continent, was planned for the fourth quarter. On December 18, 2020 Riviera suspended its duty to file periodic reports with the SEC.
Written from the 9 story beats below (2018 to 18 Dec 2020), which come from the company's own announcements and filings.