Penn Virginia Corp Closes Deal and Plans Renaming
Penn Virginia Corporation (NASDAQ: PVAC) has announced that it has closed the acquisition of Lonestar Resources US Inc. and that it plans to rename the combined company Ranger Oil Corporation.
Effective October 18, PVAC revealed that it intends to begin trading under the NASDAQ ticker symbol of ROCC. The rebranding of the business is expected to be fully complete prior to year-end 2021, according to PVAC, which has already changed its website address to rangeroil.com.
In conjunction with the closing of the Lonestar merger, PVAC is assuming the swapped hedge volumes held by Lonestar and resetting the majority of these swaps to reflect current market pricing, PVAC noted. Following the merger, Darin G. Holderness has resigned from PVAC’s board of directors. Holderness has been replaced by Richard Burnett, the former chairman of the board of directors for Lonestar, who will also serve as the chairman of the audit committee.
“In a very short time, we have significantly increased the scope and scale of the company, amplifying its free cash flow generation and return potential,” Darrin Henke, the president and chief executive officer of PVAC, said in a statement posted on its website.
“We’ve combined the asset bases of Penn Virginia, Rocky Creek Resources and Lonestar, creating a consolidated asset position producing almost 40,000 barrels of oil equivalent per day with over 140,000 net acres strategically positioned in the core of the Eagle Ford play in South Texas,” he added in the statement. “We now own high-quality inventory approximating 750 locations, approaching two decades of inventory at our current drilling pace,” Henke went on to say.
Rusty Kelley, PVAC’s senior vice president and chief financial officer, said, “over the past year and a half, we have consistently committed to certain principles along with operational and financial goals designed to deliver superior returns with reduced risk”.
“We’ve now achieved all of our first phase goals as Darin set forth, and believe we now stand at the beginning of another phase of significant fundamental value creation,” he added.
Edward Geiser, the chairman of the board of PVAC and the managing partner of Juniper Capital, said, “Juniper Capital congratulates the Ranger Oil team for its recent accomplishments and remains a committed long term equity partner of the company”.
PVAC and Lonestar first announced that they had entered into a definitive merger agreement, under which Penn Virginia would acquire Lonestar in an all-stock transaction, in July. In a company statement at the time, PVAC revealed that, under the terms of the deal, Lonestar shareholders would receive 0.51 shares of common stock of Penn Virginia for each share of common stock of Lonestar outstanding. The transaction was valued at approximately $370 million, as of July 9, 2021.
Rocky Creek Resources is a jointly owned affiliate of Juniper Capital and Boomtown Oil, the company’s website states. Its primary development targets are the Eagle Ford Shale and Austin Chalk formations, according to the site.
Ranger Oil Corporation is described as a pure-play independent oil and gas company engaged in the development and production of oil, NGLs and natural gas, with operations in the Eagle Ford shale in south Texas. The company’s corporate headquarters are located in Houston, Texas.
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