HOUSTON - Riviera Resources, Inc. (OTCQX: RVRA) ('Riviera' or the 'Company') announces the following: The Riviera Board of Directors (the 'Board') has approved a cash distribution of $1.35 per share
The Company closed the following sales
Blue Mountain Midstream LLC ('Blue Mountain') for net proceeds of approximately $111 million
Remaining North Louisiana assets for net proceeds of approximately $22 million
Interests in certain properties located in the Anadarko Basin in Oklahoma for net proceeds of approximately $13 million
The Board has approved the dissolution, winding up and liquidation of the Company, and adopted a Plan of Liquidation and Dissolution (the 'Plan of Liquidation')
The Company will make changes in leadership in connection with the Plan of Liquidation
Cash Distribution
The Company's Board has approved a cash distribution to shareholders of $1.35 per share, funded with its cash on hand. The distribution is payable on or around October 27, 2020 to all shareholders of record as of the close of business on October 23, 2020. The Company currently expects that the cash distribution should not constitute a taxable dividend for U.S. federal and state income tax purposes. Rather, the cash distribution would generally constitute a non-taxable return of capital, and a reduction to the tax basis of each recipient's ownership interest in the Company, with any amount exceeding the holder's basis subject to capital gain treatment.
The $1.35 per share distribution represented approximately 70% of the closing price per share on October 12, 2020, the last trading day before this announcement. Therefore, the ex-dividend date for the cash distribution is expected to be October 28, 2020, the first trading day following the payment date. Shareholders of record on the record date who sell their shares prior to the ex-dividend date will not be entitled to, and will also sell their right to, receive the cash distribution. As of October 12, 2020, there were 58,170,727 shares outstanding of the Company's common stock eligible to receive distributions1. Based on the $1.35 per share distribution, the aggregate cash amount of the distribution is expected to be approximately $79 million.
Blue Mountain and Upstream Asset Sales Update
On October 8, 2020, the Company closed on the previously announced Blue Mountain sale in an all cash transaction with net proceeds of approximately $111 million after closing adjustments and transaction costs. Proceeds from the sale were used to repay the total outstanding borrowings of $80 million under Blue Mountain's credit facility. Following repayment in full of all liabilities, including the Blue Mountain credit facility, the remaining sale proceeds were added to cash on Riviera's balance sheet, and will be used, in part, to fund the cash distribution of $1.35 per share. With the closing of the transaction, the Company has completely exited the midstream business.
In addition, the Company closed the previously announced sales of its interest in properties located in North Louisiana in September 2020, and interests in certain properties located in the Anadarko Basin in October 2020, for combined proceeds of approximately $35 million. The Company has also previously announced plans to sell its remaining upstream assets, primarily located in the Mid-Continent region, with plans to close in the fourth quarter of 2020.
Contact:
Tel: (281) 840-4168
Email: IR@RVRAresources.com
RIVIERA RESOURCES, INC. 
