Evolve Transition Infrastructure Announces Court Approval of Mesquite Settlement Agreement
June 07 2022 - 3:37PM
Evolve Transition Infrastructure LP (“Evolve”) (NYSE American:
SNMP) today announced the approval by the United States Bankruptcy
Court for the Southern District of Texas of the previously
announced Settlement Agreement between Evolve and Mesquite Energy,
Inc. (“Mesquite”) and certain of their respective affiliates
resolving outstanding claims between the parties.
As part of the Settlement Agreement, Mesquite will pay $10
million to Evolve and each of the parties to the Settlement
Agreement will execute and deliver to each other party to the
Settlement Agreement customary releases providing for, among other
things, the release of all claims (including relating to historic
payments), causes of action and demands accruing prior to the date
of the Settlement Agreement. The parties have agreed to exchange
the payment and customary releases within 5 days of the Bankruptcy
Court’s order approving the Settlement Agreement becoming
non-appealable or such earlier date as may be agreed by the
parties.
Concurrent with the execution of the Settlement Agreement,
Evolve and Mesquite entered into the previously announced Amended
and Restated Firm Gathering and Processing Agreement (“Restated
Gathering Agreement”) pursuant to which Evolve received an
additional dedication of Mesquite’s Eastern Catarina acreage
position in Dimmit, La Salle, and Webb counties in Texas and the
payment of amounts equaling approximately $5 million from Mesquite.
Further, the Restated Gathering Agreement extends the term of
Evolve’s previous firm gathering and processing agreement with
Mesquite and provides a separate rate for new production in
Mesquite’s Catarina acreage which solidifies Evolve’s commercial
position regarding its current gathering and processing operations
with Mesquite.
Evolve expects to use the proceeds from the payments received
and to be received in connection with the Settlement Agreement and
Restated Gathering Agreement for both debt repayment and general
partnership expenses. As a result, Evolve anticipates less than $30
million of total debt outstanding as of September 30, 2022, which
represents a significant reduction from $180 million as of December
31, 2018.
“Today’s settlement of our prior disputes with Mesquite
represents a critical step forward for Evolve and we are pleased
with this favorable outcome,” said Randall Gibbs, CEO of the
general partner of Evolve. “The settlement proceeds will allow us
not only to pay down debt but move forward with a renewed focus on
our continued dedication to the energy transition.”
About Evolve Transition Infrastructure LPEvolve
Transition Infrastructure LP (NYSE American: SNMP) is a
publicly-traded limited partnership formed in 2005 focused on the
acquisition, development and ownership of infrastructure critical
to the transition of energy supply to lower carbon sources.
Additional information about Evolve can be found in its
documents on file with the SEC which are available on its website
at www.evolvetransition.com and on the SEC’s website at
www.sec.gov.
ContactsCharles WardChief Financial
Officerir@evolvetransition.com (713) 800-9477
Forward-Looking StatementsThis press release
contains “forward-looking statements,” which involve risks and
uncertainties. All statements, other than statements of present or
historical fact, included in this press release are forward-looking
statements. Any statements that refer to Evolve’s future strategy,
future uses of capital, future operations, plans and objectives of
management or other characterizations of future events or
circumstances, including any underlying assumptions, are
forward-looking statements. In some cases, you can identify
forward-looking statements by terminology such as “may,” “expect,”
“plan,” “anticipate,” “believe,” “project” or the negative of such
terms or other similar expressions. These forward-looking
statements are based on management’s current beliefs, expectations
and assumptions regarding the future of Evolve’s business, future
plans and strategies, projections, anticipated events and trends,
the economy and other future conditions.
These forward-looking statements are subject to known and
unknown risks, uncertainties and assumptions about Evolve that may
cause Evolve’s actual results, levels of activity, performance or
achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or
implied by such forward looking statements. Therefore, you should
not rely on any of these forward-looking statements. Management
cautions all readers that the forward-looking statements contained
in this press release are not guarantees of future performance, and
actual results may differ materially from those anticipated or
implied in forward-looking statements. For more information
concerning factors that could cause actual results to differ from
those expressed or forecasted, please read Evolve’s filings with
the SEC, with particular attention to the “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” sections in Evolve’s most recent Annual
Report on Form 10-K and Quarterly Report on Form 10-Q, all of which
are available on Evolve’s website at www.evolvetransition.com and
on the SEC’s website at www.sec.gov. These cautionary statements
qualify all forward-looking statements attributable to Evolve or
persons acting on Evolve’s behalf. Except as otherwise required by
applicable law, Evolve disclaims any duty to update any
forward-looking statements, all of which are expressly qualified by
the statements in this section, to reflect events or circumstances
after the date of this press release.
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