Headquartered in Oklahoma City, Roan Resources is active in the Merge, SCOOP and STACK plays of the Anadarko Basin in Oklahoma
Oklahoma-based Roan Resources has agreed to be acquired by Warburg Pincus-backed Citizen Energy Operating in an all-cash deal worth around $1bn (£810m) — including net debt of around $780m (£634.37m).
Roan Resources is engaged in the development, exploration and acquisition of unconventional oil and natural gas reserves across the Merge, SCOOP and STACK plays of the Anadarko Basin in Oklahoma.
Roan Resources was formed in 2017
The company was created in 2017 through contributions of nearly 140,000 net acres from Linn Energy and Citizen Energy, II in the Merge/SCOOP/STACK plays. Since then, the company is said to have added additional acreage for a total of around 177,000 net acres, of which 115,000 acres are in the Merge play.
Roan Resources claims to have produced around 49,000 barrel of oil equivalent (BOE) per day by the end of the first quarter of 2019.
In May 2019, Roan Resources engaged Citigroup Global Markets and Jefferies to assist it in evaluating strategic alternatives.
As per the terms of the merger deal, Citizen Energy is offering to pay $1.52 (£1.24) per share to Roan Resources’ stockholders.
Roan Resources board executive chairman Joseph Mills said: “This transaction is the culmination of our Board’s extensive review of strategic alternatives to maximise 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 and will deliver value to our stockholders at a premium to our recent share price.”
The merger will be subject to Roan Resources’ stockholder approval, regulatory approvals and the meeting of other customary closing conditions, with closing expected to occur during the fourth quarter of this year.
Based in Tulsa, Oklahoma, Citizen Energy is focused on developing horizontal play concepts in the US onshore region. The company’s management team is said to have horizontal technical experience across the states of Oklahoma, Texas, Arkansas and Louisiana.