Eclipse Resources and Blue Ridge Mountain Resources said today Blue Mountain’s shareholders have approved Eclipse’s all-stock deal for its fellow Utica Shale independent producer.
The deal has now been approved by the boards and stockholders of each company, Kallanish Energy reports. Because Blue Ridge has received enough written consents to adopt the merger, said written consents received by Blue Ridge have become irrevocable.
As previously disclosed, Blue Ridge stockholders will receive 4.4259 shares of Eclipse Resources common stock for each share of Blue Ridge common stock, before adjustment for a 15-to-1 reverse stock split of Eclipse Resources common, which will happen concurrently with the deal closing.
Once the merger is consummated, Eclipse will change its name to Montage Resources Corp., and trade on the New York Stock Exchange under the symbol “MR.”
Seaport Global Securities put the value of the transaction when announced last August at $345 million, giving the combination an implied enterprise value of $1.4 billion and an equity value of $908 million.
Eclipse shareholders will control 57.5% of the combination, but Blue Ridge CEO John Reinhart will lead the merged company.
Before joining Blue Ridge in 2016, Reinhart was chief operating officer of Ascent Resources and served in various roles at Chesapeake Energy for more than eight years and Schlumberger for more than 11 years.
The merger creates a company with estimated Q4 2018 production of 500-560 million cubic feet-equivalent per day (Mmcfe/d) and roughly 227,000 net effective undeveloped core acres.
The merger partners expect the deal to be completed by March 1.
This post appeared first on Kallanish Energy News.