Author Topic: RVRA - Riviera Resources  (Read 3503 times)



stockspinoffinvesting

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Re: RVRA - Riviera Resources
« Reply #11 on: August 29, 2019, 07:08:57 PM »
Big positive in my mind.

The press release implies that the company is leaning towards issuing a special tax free dividend with the the proceeds. Should come out to ~$4.90 per share on a $13.25 stock.

Current market price (Even with the move up) implies a $176MM valuation for its midstream assets (Blue Mountain). Assuming a 6x multiple, the midstream asset is worth $377MM. I think longer term, the midstream asset (Blue Mountain) will be valued substantially higher.

I think the stock is worth ~$17 today with the added catalyst that you will likely receive a tax free dividend of $4.90 in Q4. Longer term, I think the stock is worth more, but it depends on Blue Mountain.