Riviera Resources Announces $1.00 Per Share Cash Distribution of Over $60 Million to Shareholders; Decision to Defer Drilling in North Louisiana; Commitment to Lowering General and Administrative Costs

HOUSTON, March 09, 2020 (GLOBE NEWSWIRE) -- Riviera Resources, Inc. (OTCQX: RVRA) (“Riviera” or the “Company”) announces its Board of Directors (the “Board”) has approved a $1.00 per share cash distribution totaling approximately $60 million, funded with proceeds received from closing on multiple asset sales in the first quarter of 2020. The Company has also decided to defer its operating drilling program in the Ruston Field of North Louisiana, reducing 2020 capital by approximately $21 million.  Finally, the Company continues to focus on lowering General and Administrative costs and expects to see significant savings versus prior periods. During these turbulent times in the energy sector, Riviera remains extremely well positioned to navigate through any prolonged commodity downturn due to its strong balance sheet, a substantial remaining net cash position and free cash flow generating assets, including Blue Mountain Midstream which is expected to be substantially cash flow positive by the end of the second quarter.

$60 Million Distribution
The Company’s Board has approved a cash distribution to shareholders of $1.00 per share. The distribution is payable on April 24, 2020 to all shareholders of record as of the close of business on April 8, 2020.  As of March 6, 2020, there were 57,996,785 shares outstanding of the Company’s common stock, and 60,324,362 shares eligible to receive distributions¹. Based on the $1.00 per share distribution, the aggregate cash amount of the distribution is expected to be approximately $60 million.

David Rottino, President and Chief Executive Officer of Riviera commented, “In the first quarter, despite a difficult market, we have successfully closed four separate transactions, for combined proceeds of approximately $68 million.  As a result, I am pleased to announce the Board has agreed to return $60 million to shareholders through a special distribution.  Because the $60 million represents only a portion of the generated proceeds and prior cash position, we will continue to have a strong balance sheet allowing us the option to return more capital in the future.”

North Louisiana Drilling Program
Based on current market prices, the Company has decided to defer initiating its operated drilling program in the Ruston Field of North Louisiana.  Because the acreage is held by production, the Company has the flexibility to drill at a later date without the risk of losing its current leases.  The Company had budgeted approximately $21 million in 2020 for the Ruston Field drilling program.  Because the wells were not expected to come on line until the fourth quarter, the impact to 2020 production and EBITDA is expected to be minimal.  If prices do improve throughout the year, Riviera will maintain the option to re-initiate the program.