This is a transformational year for Montage Resources and we are excited to close the transaction and continue working toward creating value in 2019 and beyond.” The prolific Utica and Marcellus acreage position, when combined with Montage Resources’ operational expertise, balanced midstream and downstream portfolio, and financial positioning, will facilitate management’s focus on shareholder value through the execution of a development plan prioritizing prudent growth, capital efficiency, and corporate cash flow generation. John Reinhart, President and Chief Executive Officer of Montage Resources, commented, “I am pleased to announce the closing of this transaction that leverages the scale, operational excellence and high-quality, contiguous assets of both organizations. The Company’s common stock will begin trading on the New York Stock Exchange under the new symbol “MR” on March 1, 2019, giving effect to the reverse stock split.Īs previously disclosed, Blue Ridge stockholders will receive consideration consisting of 4.4259 shares of Eclipse Resources common stock for each share of Blue Ridge common stock before adjustment for the reverse stock split, or 0.29506 shares of Eclipse Resources common stock for each share of Blue Ridge common stock after adjustment for the reverse stock split. In conjunction with the closing, the Company changed its name to Montage Resources Corporation and effected the previously announced 15-to-1 reverse stock split of its common stock. The Company is also announcing that it has entered into an amended and restated credit agreement to expand its borrowing base from $225 million to $375 million and extended the maturity date to 2024. (OTCPK:BRMR) (“Blue Ridge”) today are pleased to announce they have completed the transaction to combine the two companies under the definitive merger agreement, which was previously approved by the boards of directors and stockholders of each company. It doesn’t work that way exactly, but you get the idea.įirst up from yesterday is the announcement that the merger is done, the former CEO from Blue Ridge is the new CEO of the merged company, and the new entity has changed its name:Įclipse Resources Corporation (NYSE:ECR) (the “Company” or “Eclipse Resources”) and Blue Ridge Mountain Resources, Inc. Theoretically if you had 15 shares worth $0.75 each, combined they would be worth $11.25. By combining 15 shares of stock into one, you automatically boost the value of each share. Immediately following yesterday’s merger, the new company called Montage Resources, using Eclipse’s stock as its own, effected a previously announced 15-to-1 reverse stock split, a move meant to prevent the stock’s delisting (see NYSE Threatens Eclipse Resources with Stock Delisting). There’s no announcement about where the new HQ will be located, but the dateline from the press releases issued yesterday indicates Texas. Eclipse, on the other hand, is headquartered in State College, PA and has 128,000 acres–drilling mainly in the Ohio Utica. Looking to shed the image of the past, the company renamed itself as Blue Ridge in January 2017 (see Magnum Hunter Changes Its Name, Leaves the Bankrupt Past Behind).īlue Ridge, headquartered in Texas, has 99,000 acres of leases (mostly undeveloped) in the Marcellus and Utica Shale plays. Magnum Hunter filed for bankruptcy in December 2015, emerging from bankruptcy in May 2016 minus CEO Gary Evans (see Magnum Hunter Emerges from Bankruptcy with CEO Gary Evans Gone). Eclipse’s problem is that they ran out of money, a while ago.īlue Ridge Mountain Resources used to be Magnum Hunter Resources. That’s probably a more accurate way to think about it.Įclipse has drilled a number of record-breaking long laterals in the Ohio Utica Shale, one that reached 19,300 feet long (see Great Scott! Eclipse Drills New Longest Lateral in World – in Utica). Perhaps a better way to think about it is that the money people (investors) forced the two companies to combine and restructure. We maintain it was Blue Ridge Mountain Resources that did the buying, although technically it is a merger, because most of Eclipse’s top management, including CEO Ben Hulbert, are now gone (see Eclipse’s Top Brass Not Sticking Around After Blue Ridge Merger). The deal is done as of yesterday and there is A LOT of news to share–including a name change for the newly combined entity. We’ve been telling you since last August that the two companies are merging, with Blue Ridge Mountain essentially buying out Eclipse. Yesterday was an eventful day for the former Blue Ridge Mountain Resources (nee Magnum Hunter Resources) and Eclipse Resources. In order to access all content on Marcellus Drilling News, please visit our Subscribe page. This article is provided FREE for Google searchers.
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