Resolute Energy Corporation (“Resolute” or the “Company”) (NYSE: REN) announced today that it has entered into a definitive agreement to sell certain non-core assets in the Midland Basin portion of the Permian Basin in west Texas. The properties will be sold to a private party for a purchase price of approximately $42 million. The proceeds of the sale will be used to reduce debt, initially by reducing amounts outstanding under the Company’s revolving credit facility.
The transaction, which is expected to close on or about May 1, 2015, has an effective date of March 1, 2015, and is subject to customary conditions and purchase price adjustments, including for title and environmental defects. The assets consist of operated and non-operated properties primarily located in Howard County, Texas.
Nicholas J. Sutton, Resolute’s Chairman and Chief Executive Officer said: “This transaction represents the first step in our previously announced plan to pursue non-core asset sales to reduce debt and improve our liquidity. We look forward to closing this transaction in the coming weeks, at which time we will provide a more detailed breakdown of the assets sold, and the production and cost impact on Resolute for the calendar year 2015.”
Resolute also announced that William H. Cunningham and Robert M. Swartz resigned from their positions on the Board of Directors effective March 25, 2015. Both Dr. Cunningham and Mr. Swartz had served on the Board of the Company since 2009.
Mr. Sutton commented: “Bill and Rob have both been valued members of our Board for more than five years. The entire Resolute Board of Directors and management team extend to Bill and Rob our most sincere thanks and our very best wishes for their continued success.”
Thomas O. Hicks, Jr., Chairman of the Corporate Governance / Nominating Committee of the Board commented: “Bill and Rob were original designees of the Hicks organization to the Resolute Board following Resolute’s public merger transaction in 2009. I would like to personally and publicly thank them for their long service to the Resolute Board and wish them the best of luck in their future endeavors.”
As of the date of these resignations, the number of Directors constituting the Board was reduced to six, including four independent directors.