Linn Energy Inc. completed its spinoff of Riviera Resources Inc., separating its midstream and certain upstream businesses and delineating the focus of Linn's oil and gas exploration and production operations.
Riviera's focus is on developing growth-oriented assets and operating mature low-decline assets, which include Linn's legacy properties in the Hugoton Basin, East Texas, North Louisiana, Michigan/Illinois, the Uinta Basin and Mid-Continent regions. Riviera also will serve as the parent of Blue Mountain Midstream LLC, which operates in the core of the Merge play in the Anadarko Basin.
As an independent company, Riviera will start trading on the OTC Market under the ticker symbol RVRA on Aug. 8, according to an Aug. 7 news release.
Linn continues to own a 50% equity stake in the exploration and production company Roan Resources LLC, whose focus is on the accelerated development of the Merge/SCOOP/STACK play in Oklahoma.
As a result of the spinoff, Linn stockholders holding common stock as of the record date of Aug. 3 received one share of Riviera common stock for each Linn common stock held.
Consequently, David Rottino, president and CEO of Riviera and former CFO of Linn, has been named president and CEO of Linn. He will be replacing Mark Ellis, who retired in connection with the spinoff.
"We believe the spinoff is a critical step to begin to unlock the sum of parts value of these three businesses," said Evan Lederman, chairman of Linn's board.