A successor of one of Houston’s biggest bankruptcy collapses during the last oil bust is being sold for about $230 million.
Former Wall Street darling Linn Energy imploded during the bust, filing for bankruptcy, eventually splintering into three companies and dissolving the “Linn” name.
The three successor companies formed were Roan Resources of Oklahoma City, Riviera Resources of Houston and Berry Petroleum of Dallas.
Now also struggling, Roan Resources, which focuses on Oklahoma shale plays that have underperformed industry-wide of late, is being sold to Tulsa-based Citizen Energy, a company backed by the private equity firm Warburg Pincus.
The total, all-cash deal is for about $1 billion, including the assumption of Roan’s $780 million debt load.
Roan saw its stock value plunge from more than $16 per share down to below $1.50 in less than a year.
In May, Roan announced it was considering strategic alternatives, including a sale of the company.
“This transaction is the culmination of our board’s extensive review of strategic alternatives to maximize value for our stockholders, including a comprehensive process during which we engaged with a considerable number of counterparties,” said Roan Executive Chairman Joseph Mills.
Linn’s other successors, Riviera and Berry, continue to operate.
This article first appeared on the Houston Chronicle – an Energy Voice content partner. For more from the Houston Chronicle click here.