Revenir Energy Announces Final Sale, Marking Strategic Exit from Operated Oil and Gas Portfolio

Source: 6/18/2024, Location: North America

Revenir Energy Inc., formerly known as Legacy Reserves Inc., announces the substantial conclusion of its strategic process to monetize the Company's oil and gas assets and return capital to its shareholders. This process reached its conclusion with the sale of the Company's remaining operated assets in the Northern Midland Basin on May 15th.

Following its emergence from bankruptcy in late 2019, the Company brought in a new management team led by Rick Betz (CEO), the co-founder and former CEO of Resolute Energy, Michael Stefanoudakis (CFO), Michael Rumon (SVP – Technical Services), and Doug Dietrich (SVP – Operations). The Revenir team was expanded to include senior professionals with diverse experiences across many basins and technical competencies. The change was intended to provide the Company with a fresh perspective and a strategy reset for its post-restructuring future.

Under the direction of this new leadership team, Revenir underwent a strategic transformation with an increased focus on creating shareholder value, reducing debt, and ensuring long-term corporate sustainability. Operationally, Revenir evolved from a geographically dispersed low-margin production-oriented operator with approximately 12,000 wells spanning 9 states, to an unconventional-focused operator with over ten years of high-quality horizontal inventory in some of the premier basins in the onshore U.S.

As a result of a thorough assessment of its portfolio, Revenir began monetizing 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. This initial non-core process resulted in the divestment of over 10,000 wells and the exit from operations in 7 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 with peak rates of 22,000 to 28,000 mcf/d resulting in a production increase from 15 Mmcf/d to over 100 Mmcf/d. This 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.

In the Permian Basin, Revenir focused 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. These efforts resulted in the successful sale of the asset in November 2023.

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. Revenir drilled 25 wells, with peak rates of 1,400 to 1,700 boe/d, establishing a new, highly economic development area within the Midland Basin. The growth, consolidation, and development execution of these 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. During this process, the Company returned over $630 million to shareholders and amortized in excess of $700 million in liabilities. Revenir will now focus exclusively on winding up its affairs.

As Revenir closes the chapter on its successful turnaround and strategic exit from the market, the Company expresses gratitude to its shareholders, partners, and employees for their support and dedication throughout this transformative journey.

The other members of the Revenir senior leadership team consisted of:

- Erin Murphy: VP, General Counsel & Corporate Secretary

- Taylor Thoreson: VP of Land & Business Development

- Melinda Kessens: VP of Human Resources & Administration

- Michael LeBaron: VP of Production Operations

- Cory Elliott: VP of IT & Administration

- Shaler Tate: VP & Controller

- Matt Herzog: Director of Engineering

- Dwight Mallory: Director of Environmental Health & Safety

- Cyndi Tschacher: Director of Land Administration

- Kendra Pilati: Director of Development

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