Southland names MorningStar winning bidder for San Juan Basin assets

By Caroline Salls

Pittsburgh, May 26 – Southland Royalty Co. LLC has named MorningStar Operating LLC as the winning bidder for its San Juan Basin assets, according to a notice filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, MorningStar was the stalking horse bidder for the San Juan Basin assets.

According to Friday’s notice, the winning bid is expected to generate $53.3 million in total value for Southland’s estate, including an $11.3 million cash purchase price, assumption of plugging and abandonment liabilities with an estimated value of $36 million, payment of $3.9 million in cure costs and $2.1 million in value attributed to the bidder causing its Morningstar Partners, LP affiliate to make amendments to a management services agreement.

The sale hearing is scheduled for May 28.

Fort Worth-based Southland is an upstream energy company. The company filed bankruptcy on Jan. 27 under Chapter 11 case number 20-10158.

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