Riviera Resources Inc. signed an agreement to divest its remaining interest in properties in the Hugoton Basin to an undisclosed buyer for $295 million, marking its exit from the basin, according to an Aug. 28 news release.
The properties include 4,000 wells, which reported a second quarter net production of 104 MMcfe/d, as well as the company's Jayhawk and Satanta natural gas processing plants in Grant County, Kan.
The estimated proceeds will be added to cash on Riviera's balance sheet, while its use will be determined by the firm's board and management, the release said.
Riviera said the exit from the basin, which sits in southwestern Kansas and extends into Oklahoma and Texas, will generate approximately $10 million in annualized general and administrative cost savings starting in the first quarter of 2020.
The deal has an effective date of July 1 and is expected to close in the fourth quarter subject to completion of customary title and environmental due diligence, as well as the satisfaction of closing conditions.
CIBC Griffis & Small acted as financial advisers and Kirkland & Ellis LLP as legal counsel during the transaction.
