Revenir Energy Inc., formerly known as Legacy Reserves Inc., has completed its exit from the market, concluding its process of monetizing its oil and gas assets and returning capital to its shareholders.The process reached its conclusion with the sale of the company’s remaining operated assets in the Northern Midland Basin, Revenir said in a news release.
Legacy Reserves Inc. rebranded as Revenir Energy in March 2023, “reflecting the strategic evolution of the company and its renewed focus as a top-tier operator in two of the premier basins in the United States,” according to an earlier statement.
“Our rebranding under Revenir is a significant milestone in our company’s journey,” Revenir CEO Richard Betz said. “We believe that our new name reflects our continued commitment to industry-leading operations and development in the Permian Basin and East Texas. We are confident that our new brand will help us to continue delivering value to our stakeholders and support our long-term growth”.
Betz was brought in to lead a new management team after the company emerged from bankruptcy in late 2019. Under the direction of the new leadership team, Revenir “underwent a strategic transformation with an increased focus on creating shareholder value, reducing debt, and ensuring long-term corporate sustainability,” according to the release.
Operationally, Revenir evolved from a geographically dispersed low-margin production-oriented operator with approximately 12,000 wells spanning nine states, to an unconventional-focused operator with over ten years of high-quality horizontal inventory in some of the premier basins in the onshore USA.
Revenir said it monetized its non-core assets to capitalize on growth opportunities around its existing footholds in the Midland Basin, the Delaware Basin, and the East Texas Haynesville to establish development positions and enhance the marketability of its core assets, resulting in the divestment of over 10,000 wells and the exit from operations in seven states.
In East Texas, Revenir doubled its Haynesville and Middle Bossier development position to 34,000 net acres through organic leasing and acquisitions. In the same period, the company drilled 13 wells, resulting in a production increase from 15 million cubic feet per day (MMcfpd) to over 100 MMcfpd. The enhanced acreage footprint combined with the de-risking of the resource potential through development resulted in the successful sale of the asset in October 2023, the company noted.
Revenir was able to sell its assets in the Permian Basin in November 2023 by focusing its growth and development strategy on core areas of the northern Midland and Delaware basins. The Delaware Basin position, concentrated in Lea County, NM, was expanded to establish a developable leasehold position of 6,000 net acres of stacked Bone Spring and Wolfcamp inventories.
Finally, in the Midland Basin, Revenir executed over 100 transactions and organically leased to establish a 25,000 net acre position as an early entrant into the Dean Play fairway on the Martin/Dawson County line. The growth, consolidation, and development execution of the assets culminated in the divestiture of the company’s position in two transactions, capping Revenir’s successful exit of all operated assets on May 15, 2024.
Cumulatively, the company completed over 20 successful dispositions for gross proceeds of over $1.2 billion. The company returned over $630 million to shareholders and amortized in excess of $700 million in liabilities, according to the release.Revenir said it will now focus exclusively on winding up its affairs.
Source:https://www.rigzone.com