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Friday, August 31, 2018

Eclipse Resources Set to Merge With Blue Ridge Mountain Resources

From NGI:
Utica and Marcellus shale operators Eclipse Resources Corp. and Blue Ridge Mountain Resources Inc. agreed to merge on Monday, an all-stock combination to create an Appalachian-focused enterprise with combined 4Q2018 output of 500-560 MMcfe / d, 227,000 net undeveloped core acres and an estimated 20 years of oil and natural gas inventory. 
Blue Ridge will become a subsidiary of Eclipse. Blue Ridge stockholders for each share are to receive 4.4259 shares of Eclipse, a deal that values ​​Eclipse stock at $ 7.44 / share based on the Friday (Aug. 24) closing price. 
Eclipse shareholders would own about about 57.5% of the combined company, with Blue Ridge owning 42.5%. 
Eclipse CEO Benjamin Hulburt, who served as chairman, CEO and president Since its inception, called the merger "compelling" and a "combination that both both of us to consolidate premier assets company's production and cash flow, seamlessly fit into a consolidated drilling program, "as well as provide" considerable "general and administrative synergies. 
Eclipse holds close to 156,000 net acres in Ohio and Pennsylvania, with about 15,500 prospective for the Marcellus. Known for drilling some of the longest super laterals ever in Ohio's Utica, Eclipse has faced a financial crunch. Second quarter production hit the top end of guidance with volumes of 305.2 MMcfe / d.
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The Pittsburgh Business Times added this to the story:
Only one of the top Eclipse Resources Corp. management team will be staying with the company after it merges with Blue Ridge Mountain Resources in an all - stock deal worth $ 908 million. 
The combined company, after the deal closes in the fourth quarter, will be run by Blue Ridge President and CEO John Reinhart , who will retain the title. Reinhart will also be a member of the 10-person board, which will also include four others named Blue Ridge (OTCPK: BRMR) and five from Eclipse (NYSE: ECR), including four from Eclipse's majority shareholder, Encap Investments. 
SEC filings show what the news release did not: Eclipse President and CEO Benjamin W. Hulburt; Eclipse EVP / General Counsel Christopher K. Hulburtand Eclipse EVP / CFO Matthew R. DeNezza . All signed separation agreements dated Aug. 24, according to an SEC filing Eclipse made Monday after the merger was announced
Eclipse's EVP and COO, Oleg Tolmachev, who is responsible for a lot of the technical advances made by the drilling company including the record-breaking super lateral wells, will remain with the company with the same titles.
Read more of that article by clicking here. 

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