Riviera finishes exit from Hugoton Basin

The $295 million sale in which Houston’s Riviera Resources LLC is leaving the Hugoton Basin of Southwest Kansas should be finalized by now.

Leaders of Riviera said last summer they expected the sale to be finalized by year’s end as the company cleaned its hands of nearly 4,000 wells in the basin. The new owner of the wells that had net output of 104 MMcfe/d in the second quarter was not disclosed. The purchase by the undisclosed buyer included natural gas processing plants in Grant County, Kansas as well as an inactive Satanta processing plant.

CEO David Rottino said at the time of the sale announcement in August 2019 that it would complete the company’s exit from the Hugoton.

“Over the last six months we have strategically monetized our Hugoton Basin properties for over $405 million total through a series of three transactions,” he said. “Accomplishing a complete regional exit through these transactions not only highlights the value of our assets, but our capability to resourcefully maximize value given the current market environment.”

Riviera became an independent producer following its spinoff from Linn Energy Inc. last year and in April announced the $31 million sale of nearly 2,300 nonoperated wells with proved developed reserves in the Hugoton basin.