The End Is Near for Riviera Resources

19 October 2020

The board of directors of Riviera Resources has approved the dissolution, winding up, and liquidation of the company and adopted a plan of liquidation and dissolution, under which the Houston-based independent will cease to exist by the end of this year.

The dissolution will mark the end of a 2-year existence for Riviera, which was formed in April 2018 by LINN Energy, then spun off in August of the same year. The company stated that its strategic focus was on efficiently operating what it referred to as its mature, low-decline assets.

On 13 October, Riviera announced the following.

  • Approval of a cash distribution to shareholders of $1.35 per share
  • Closing of the following sales:
    • Blue Mountain Midstream LLC to Citizen Energy for approximately $111 million
    • Remaining North Louisiana assets for approximately $22 million
    • Interests in certain properties located in the Anadarko Basin in Oklahoma for approximately $13 million

The distribution to shareholders will be paid with the company’s cash on hand and will be payable on or around 27 October to all shareholders as of the close of business on 23 October. As of 12 October, there were 58,170,727 shares outstanding of common stock eligible to receive distributions. Based on the $1.35 per share distribution, the aggregate cash amount of the distribution is expected to be approximately $79 million.

The company has two operating segments—upstream and Blue Mountain.

The upstream properties are primarily located in two US operating regions. The Mid-Continent region includes properties in the Northwest STACK in northwestern Oklahoma and various other oil and natural gas producing properties throughout Oklahoma. Its North Louisiana assets include oil and natural gas properties producing primarily from the Hosston, Cotton Valley Bossier, and Smackover formations.

The Blue Mountain segment comprises a cryogenic natural gas processing facility, a network of gathering pipelines and compressors, produced-water services, and a crude-oil-gathering system, all located in the Merge/SCOOP/STACK play.

In the first quarter of 2020, Riviera completed the sale of its interests in nonoperated properties in the Drunkards Wash field in the Uinta Basin and the Overton and Personville fields in East Texas.

About Liquidation, Dissolution, and Winding Up

There are multiple ways of ending a company’s existence. Liquidation, dissolution, and winding up are different but related terms and actions related to this process.  

  • Liquidation is the process of bringing a business to an end by converting its assets to cash and distributing it to claimants. A liquidation plan provides for the sale, lease, or other disposition of all of the company’s assets.
  • Dissolution ends a company’s existence as a legal entity. The existence of the company is terminated by filing documents to dissolve the company as a business entity.
  • Winding up a company is governed by the business and corporate laws of each state and the company’s governing documents. In this process, the company “winds up” its affairs. While winding up, a company may no longer pursue business as usual. The only action it may attempt is to complete the liquidation and distribution of its assets. At the end of the process, the company is dissolved and ceases to exist.

Winding Up vs. Bankruptcy

Winding up a business is not the same as bankruptcy. In a bankruptcy, creditors attempt to gain access to a company's assets so they can be liquidated to pay off debts. The proceedings can help a company emerge as a new entity that is debt-free and usually smaller.

Conversely, once winding up has begun, a company can no longer pursue business as usual. The only action it may attempt is to complete the liquidation and distribution of its assets.

Riviera Resources has stated that it intends to file a certificate of dissolution with the State of Delaware, at which time its transfer books and records will be closed and its common stock will cease trading. This will occur no later than the close of business on 31 December. The company’s stock was trading at $1.60 per share as of the morning of 19 October.

Organization Id

Organization Name

R6463

RIVIERA OPERATING, LLC

 

Cnt

Well Serial

Well Name

Well Num

Status

Class

Class Type

API Number

Org ID

Field ID

Permit Date

Sec-Town-Rng

Parish

LUW Association

1

37274

VGN SUJ;DELLA COLVIN ET AL

001

33

17061002010000

R6463

7806

03-JAN-49

018-19N-02W

31

GO TO LUW INFO

2

38296

VGN SUO;W F JILES

002

22

17061002040000

R6463

7806

17-JUN-49

019-19N-02W

31

GO TO LUW INFO

3

38947

DELLA COLVIN ET AL

001-D

33

17061002010000

R6463

7806

06-SEP-49

018-19N-02W

31

GO TO LUW INFO

4

39094

BOD SUB;W F JILES

002-D

33

17061002040000

R6463

7806

21-SEP-49

019-19N-02W

31

GO TO LUW INFO

5

40433

VGN SUV;R D BALL

001

33

17061002230000

R6463

7806

31-MAR-50

030-19N-02W

31

GO TO LUW INFO

6

41506

BOD SUA;R D BALL

001-D

33

17061002230000

R6463

7806

17-AUG-50

030-19N-02W

31

GO TO LUW INFO

7

77995

MCF SUA;DELLA COLVIN ET AL

001-T

33

17061002010000

R6463

7806

30-DEC-59

018-19N-02W

31

GO TO LUW INFO

8

78536

MCF SUD;W F JILES

002-T

22

17061002040000

R6463

7806

16-FEB-60

019-19N-02W

31

GO TO LUW INFO

9

83090

G F BUTLER

002-D

30

17073003200000

R6463

2216

18-MAR-69

029-18N-01E

37

GO TO LUW INFO

10

83091

G F BUTLER

002-T

30

17073003200000

R6463

2216

24-JAN-61

029-18N-01E

37

GO TO LUW INFO

11

162903

VGN SUW;J H MATHEWS

003

33

17061202020000

R6463

7806

01-MAR-79

029-19N-02W

31

GO TO LUW INFO

12

191906

MCFRN SUB;LEWIS

002

33

17061203930000

R6463

7806

09-MAY-84

013-19N-03W

31

GO TO LUW INFO

13

193858

CV 8630 RA SUA;LEWIS

002-D

33

17061203930000

R6463

7806

08-AUG-84

013-19N-03W

31

GO TO LUW INFO

14

207328

HOSS 7950 RA SUD;CLAY COLVIN B

003-ALT

33

17061204840000

R6463

7806

19-NOV-87

024-19N-03W

31

GO TO LUW INFO

15

208111

CLAY COLVIN B

003-D

33

17061204840000

R6463

7806

08-APR-88

024-19N-03W

31

GO TO LUW INFO

16

220029

L H GILES EST

001

33

17061206370000

R6463

7806

30-DEC-96

019-19N-02W

31

GO TO LUW INFO

17

230837

VGN SUO;DELLA COLVIN 19

001-ALT

33

17061207870000

R6463

7806

04-FEB-05

019-19N-02W

31

GO TO LUW INFO

9500

18

231234

DELLA COLVIN 19

001-D

10

17061207870000

R6463

7806

02-MAY-05

019-19N-02W

31

GO TO LUW INFO

9285

19

234196

EVA COLVIN

003

35

17061208560000

R6463

7806

21-SEP-06

019-19N-02W

31

GO TO LUW INFO

9500

20

234278

VGN SUV;COOK ESTATE

002-ALT

33

17061208620000

R6463

7806

04-OCT-06

030-19N-02W

31

GO TO LUW INFO

9500

21

234340

VGN SUP;CLAY COLVIN B

005

33

17061208650000

R6463

7806

16-OCT-06

024-19N-03W

31

GO TO LUW INFO

9400

22

234382

VGN SUO;JILES HEIRS

005-ALT

22

17061208690000

R6463

7806

23-OCT-06

019-19N-02W

31

GO TO LUW INFO

9500

23

234928

COOK ESTATE

002-D

22

17061208620000

R6463

7806

30-JAN-07

030-19N-02W

31

GO TO LUW INFO

9195

24

234929

HOSS 8100 RA SUD;CLAY COLVIN B

005-D

10

17061208650000

R6463

7806

30-JAN-07

024-19N-03W

31

GO TO LUW INFO

9220

25

235007

VGN SUO;J B JILES 19

001-ALT

10

17061208980000

R6463

7806

09-FEB-07

019-19N-02W

31

GO TO LUW INFO

9300

26

235069

EVA COLVIN

003-D

22

17061208560000

R6463

7806

23-FEB-07

019-19N-02W

31

GO TO LUW INFO

9125

27

235265

JILES HEIRS

005-D

10

17061208690000

R6463

7806

29-MAR-07

019-19N-02W

31

GO TO LUW INFO

9090

28

235550

J B JILES 19

001-D

33

17061208980000

R6463

7806

14-MAY-07

019-19N-02W

31

GO TO LUW INFO

9013

29

237635

J B JILES

005

22

17061210400000

R6463

7806

08-MAY-08

030-19N-02W

31

GO TO LUW INFO

9003

30

237636

VGN SUV;MAYFIELD 30

002-ALT

10

17061210410000

R6463

7806

08-MAY-08

030-19N-02W

31

GO TO LUW INFO

8983

31

237637

VGN SUV;COOK ESTATE

003-ALT

33

17061210420000

R6463

7806

05-MAY-08

030-19N-02W

31

GO TO LUW INFO

9143

32

238237

HOSS 6975 RA SUH;MAYFIELD 30

2D-ALT

33

17061210410000

R6463

7806

25-JUL-08

030-19N-02W

31

GO TO LUW INFO

8980

33

238436

HOSS 7950 RA SUH;COOK ESTATE

3-D-ALT

33

17061210420000

R6463

7806

15-AUG-08

030-19N-02W

31

GO TO LUW INFO

9123

34

238570

HOSS 6975 RA SUH;J B JILES

5-D-ALT

10

17061210400000

R6463

7806

26-AUG-08

030-19N-02W

31

GO TO LUW INFO

9002

35

240688

L H GILES EST

003

10

17061211080000

R6463

7806

12-JAN-10

019-19N-02W

31

GO TO LUW INFO

9900

Views: 229

Replies to This Discussion

Thanks for the information Skip.  Any idea who has purchased the north LA properties?

You're welcome, Charles.  I do not know that the north LA properties have been sold.  I do not even know if they have been marketed yet.  This is the first article that I have seen stating that Riviera will liquidate instead of pursue bankruptcy reorganization.  If I run across any information regarding a sale, I'll post it.

Neighboring Nadel and Gussman purchased Ruston assets. 

Nadel & Gussman would make sense as the buyer.  Thanks, Joshua.

RSS

Donate to GHS

We need some help for 2021. We have 2 options for giving. Thank you for your consideration.

Donate on gofundme


Donate Via Paypal

Not a member? Get our email.

Groups

Click Here!



© 2020   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service