Sanchez Production Partners LP (NYSE MKT: SPP) (“SPP” or the “Partnership”) today announced that it intends to implement a 1-for-10 reverse split on its common units, effective after the market closes on August 3, 2015.
“Since the summer of 2013, we have worked diligently to better position SPP for future growth by initiating a business development relationship with a committed sponsor, executing management service and related agreements, transitioning employees to Sanchez Oil & Gas Corporation, converting SPP to a limited partnership, and executing our first transaction with Sanchez Energy Corporation,” said Gerald F. Willinger, Interim Chief Executive Officer of the general partner of SPP. “With a solid foundation for SPP built, we are now ready to implement the next set of measures necessary for growth. As we look to expand the Partnership’s asset base by pursuing a larger-scale transaction with a view toward resuming distributions in 2015, we are focused on increased visibility and the deliberate expansion of our unitholder base by attracting institutional investors. The reverse split is supportive of these goals, and represents an important component of our overall strategic plan.”
Pursuant to the reverse split, common unitholders will receive one common unit for every ten common units they own at the close of trading on August 3, 2015. All fractional units created by the reverse split will be rounded to the nearest whole unit. If the fraction created is less than one-half, it will be rounded down to the nearest whole unit. If the fraction is one-half or more, it will be rounded up to the nearest whole unit. Each unitholder will get at least one unit.
The Partnership anticipates that the reverse split will decrease the number of common units outstanding from approximately 31.5 million to 3.1 million.
The Partnership’s transfer agent, ComputerShare Investor Services, will adjust its records to reflect each unitholder’s post-split position. Unit adjustments to physical unit certificates can be made upon surrender of the certificate to the transfer agent. Please contact ComputerShare Investor Services for further information at (781) 575-2879 or by E-mail directed to firstname.lastname@example.org.
A new CUSIP number for the common units will be issued and announced in connection with the reverse split, and the Partnership’s common units will continue to trade under the symbol “SPP” on NYSE MKT.
Additional information on the reverse split and capital restructuring can be found in SPP’s filings with the Securities Exchange Commission (www.sec.gov), which are also available on SPP’s website (www.sanchezpp.com).
About the Partnership
Sanchez Production Partners LP (NYSE MKT: SPP) is a publicly-traded limited partnership focused on the acquisition, development and production of oil and natural gas properties and other integrated assets. The partnership’s proved reserves are currently located in the Cherokee Basin in Oklahoma and Kansas, the Woodford Shale in the Arkoma Basin in Oklahoma, the Central Kansas Uplift in Kansas, and along the Gulf Coast in Texas and Louisiana.