Citizen Energy in $1B Acquisition of Roan Resources



Citizen Energy in $1B Acquisition of Roan Resources
U.S. independent Roan Resources, Inc. has entered into a definitive merger agreement to be acquired by privately funded Citizen Energy Operating, LLC in an all-cash transaction valued at $1 billion, including Roan's debt.

U.S. independent Roan Resources, Inc. has entered into a definitive merger agreement to be acquired by privately funded Citizen Energy Operating, LLC in an all-cash transaction valued at $1 billion, including Roan’s debt.

Under the agreement, Roan stockholders will receive $1.52 in cash for each share of Roan common stock they own.

Roan is headquartered in Oklahoma City, Oklahoma, and focuses on the Merge, SCOOP and STACK plays of Oklahoma’s Anadarko Basin. The company was formed in 2017 with contributions from Linn Energy, Inc. (which filed bankruptcy in May 2016) and Citizen Energy, II, LLC.

“We are pleased to reach this agreement with Citizen Energy,” Joseph Mills, Roan’s executive chairman of the board, said in a release. “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. Ultimately, the board unanimously determined that an all-cash transaction with Citizen Energy is in the best interests of our stockholders and the company...”

Roan also announced the appointment of Rick Gideon as CEO who will assume his new responsibilities immediately.

“We are very pleased to bring Rick onboard to see the company through the closing process,” Mills said. “His leadership and focus will be important during the transition of the business.”

Roan said it will temporarily reduce its drilling and development activity as well as suspend all completion activity “to allow [Gideon] time to assess the company’s overall operations plan.” Because of this, investors should no longer rely on the guidance provided by the company on its last quarterly investor call, Roan added.

Citi and Jefferies LLC are serving as financial advisors to Roan while BofA Merrill Lynch is serving as financial advisor to Citizen Energy.

The transaction is expected to be completed in fourth quarter of 2019 or first quarter of 2020.

To contact the author, email Valerie.Jones@Rigzone.com



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