Eclipse, Blue Mountain to Merge, Creating $1.4B Appalachia-Focused Company

Eclipse, Blue Mountain to Merge, Creating $1.4B Appalachia-Focused Company
Two E&P companies with heavy focus in the Utica and Marcellus have agreed to a merger.

Independent exploration and production companies Eclipse Resource Corporation (based in Pennsylvania) and Blue Ridge Mountain Resources (based in Irving, Texas) have agreed to a merger with an enterprise value of $1.4 billion.

The all-stock deal was announced August 27 and will result in Blue Ridge becoming a subsidiary of Eclipse. The deal’s equity value is $908 million.

The merger positions the newly formed company to be a top-tier energy company with a strong focus on the Appalachian region. Currently, Eclipse focuses on the Utica and Marcellus shale plays in southeastern Ohio. And Blue Ridge has 34 currently producing operated wells within the Marcellus, according to the company’s website. The Utica has been identified as a significant growth area.

The deal is expected to create one of the largest Utica-focused operators with 4Q 2018 estimated production of 500-560 MMcfe per day and 227,000 net undeveloped core acres providing more than 20 years of wet and dry gas inventory.

Eclipse president and CEO Benjamin W. Hulburt described the merger as a “compelling opportunity” for both companies.

Blue Ridge president and CEO John Reinhart will become president and CEO of the new company.

“We believe the combined company will possess a substantial scale advantage and an excellent foundation for significant organic growth with attractive cash flows while maintaining the optionality for bolt-on value-accretive acquisitions within the basin,” Reinhart stated in a release. 

The deal is scheduled to close in the fourth quarter of 2018.


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