By November 27, 2015 Read More →

Resolute Energy selling Gardendale assets in Midland Basin

“We believe these transactions have positioned the Company to accelerate development of the attractive opportunities in our property base.”

Resolute Energy

Nicholas J. Sutton, Resolute Chairman and Chief Executive Officer

DENVER – Resolute Energy Corporation says it has entered into a definitive agreement to sell its Gardendale assets in the Midland Basin of West Texas to an undisclosed buyer for a purchase price of $177.5 million.

The proceeds of the sale initially will be used to reduce debt and longer term will be used to fund development activity in the Company’s properties in the Delaware Basin in west Texas and Aneth Field in southeast Utah.

The transaction, which is expected to close on or about Dec. 22, has an effective date of Sept. 1, 2015, and is subject to customary closing conditions and purchase price adjustments, including for title and environmental defects.

Under the terms of the purchase and sale agreement, the buyer has placed a purchase deposit of $15 million into an escrow account.

“This transaction represents a continuation of our previously announced strategy to reduce debt and improve our liquidity and will allow us to focus on the development of our Permian Basin assets as well as our other properties,” said Nicholas J. Sutton, Resolute’s chairman and CEO.

“Upon closing this transaction, we will have completed nearly $275 million of asset sales this year.”

Sutton says the transactions have positioned Resolute Energy to accelerate development of opportunities in its property base.

“We continue to work on a number of other strategic initiatives, including the potential monetization of our Reeves County midstream infrastructure assets,” he said in a press release.

“We are also assessing the potential restructuring of our existing secured debt facilities in light of the numerous transactions recently announced by other companies in the industry.”

Resolute Energy

Petrie Partners, LLC and BMO Capital Markets acted as financial advisors to Resolute on the Gardendale asset sale transaction.

Resolute Energy also says it will not undertake a reverse stock split prior to year-end 2015. In consultation with the NYSE, the company has confirmed that NYSE policies permit the company a period up until the 2016 annual meeting to bring the trading price of the company’s common stock back up to the $1.00 continued listing standard.

In the event that the trading price of Resolute Energy common stock does not increase as a result of market improvement before the 2016 annual meeting, then the company will again pursue approval of a reverse stock split by its stockholders and consummate the reverse stock split promptly following the 2016 annual meeting to maintain its listing. During this period, the company’s common stock will continue to be traded on the NYSE, subject to compliance with other continued listing requirements

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