Revenir winding down after over $1.2B in divestments

Revenir Energy Inc. concluded its strategic asset monetization program with the May 15 sale of its operated northern Midland Basin oil and gas assets in West Texas and announced June 18 it will now wind down its remaining affairs. Known as Legacy Reserves Inc until March 2023, Revenir completed more than 20 dispositions, bringing over $1.2 billion, returned $630 million to shareholders and amortized more than $700 million in liabilities.

After exiting bankruptcy in late 2019, the company installed a new executive management team led by former Resolute Energy executives Richard Betz as CEO, Michael Stefanoudakis as CFO, Michael Rumon as technical services SVP and Doug Dietrich as operations SVP. The new team led a strategic transformation focused on creating shareholder value, reducing debt and ensuring long-term corporate sustainability.

After thoroughly assessing its portfolio—including more than 12,000 wells in nine states—Revenir monetized its non-core assets to capitalize on growth opportunities around its existing footholds in the Midland and Delaware basins and East Texas Haynesville, establishing development positions and enhancing its core assets’ marketability. This initial non-core process divested more than 10,000 wells and exiting operations in seven states.

At the same time, the company doubled its Haynesville and Middle Bossier position in East Texas to 34,000 net acres and drilled 13 wells that hit peak rates ranging 22-28 MMcf/d, increasing output from 15 MMcf/d to over 100 MMcf/d. These assets were sold to Silver Hill Energy Partners for $219.7 million last October.

Revenir also expanded its assets in the Delaware Basin, concentrated in Lea County, New Mexico, to 6,000 net acres with Bone Spring and Wolfcamp development opportunities. An undisclosed buyer acquired the assets for $180 million last November.

The company additionally built a 25,000-net-acre Midland Basin position through more than 100 transactions and organic leasing as an early entrant into the Dean play fairway on the Martin/Dawson County line, drilling 25 wells with peak rates ranging 1,400-1,700 boe/d. This position was divested in two transactions, including the May 15 deal.