A Bullish Trade Resolute Energy Corp Made After Michael Weinstock’s Monarch Alternative Capital Lp increased Its Position

May 16, 2018 - By Mary Markley

Michael Weinstock’s Monarch Alternative Capital Lp posted increased Interest in Resolute Energy Corp

In the following link 000119312518165320 you can find SC 13D/A SEC report about Resolute Energy Corp, filed by Monarch Alternative Capital Lp.The filler increased its position in the stock by 3.31 % for 2,268,400 shares.On May 15, 2018 Michael Weinstock’s Monarch Alternative Capital Lp holds 9.79% of the Energy- stock.

The hedge fund looks more positive with $6.62 billion after such an increase of its Resolute Energy Corp ownership.

The hedge fund have positions in the Energy sector. Its 9% of Michael Weinstock’s Monarch Alternative Capital Lp�s US portfolio.

And that’s Why Michael Weinstock’s Monarch Alternative Capital Lp Holds Resolute Energy Corp

Purpose of Transaction

Item 4 of this Schedule 13D is hereby amended and supplemented to include thefollowing:

On May 15, 2018, MAC and its affiliate Monarch Energy Holdings LLC (“MEH” and, together with MAC,“Monarch”) entered into a settlement agreement with the Issuer (the “Settlement Agreement”). The following description of the Settlement Agreement is qualified in its entirety by reference to the SettlementAgreement, which is attached as Exhibit 99.6 hereto and is incorporated herein by reference.

Effective upon the execution of theSettlement Agreement, the Issuer increased the size of the Board to eleven (11)members (from eight (8)members) and Joseph Citarrella, a Managing Principal of MAC, was appointed to fill one of the vacancies on the Board resultingtherefrom, with Mr.Citarrella appointed to the class of directors whose term expires at the Issuer’s 2019 annual meeting of stockholders (the “2019 Annual Meeting”). The Issuer appointed Wilkie S. Colyer, Jr. andRobert Raymond to fill the remaining vacancies, with Messrs. Colyer and Raymond appointed to the class of directors whose term expires at the Issuer’s 2020 annual meeting of stockholders (the “2020 Annual Meeting”).Pursuant to the terms of the Settlement Agreement, Monarch withdrew its Notice of Stockholder Nominations of Individuals for Election as Directors at the 2018 AnnualMeeting of Stockholders of Resolute Energy Corporation submitted to the Issuer on February8, 2018.

In addition, the Issuer agreed to engage each of Petrie Partners, LLC and GoldmanSachs& Co. LLC (the “Advisors”) on customary and reasonable terms to assist the Issuer in a review of the Issuer’s business plan, competitive positioning, and potential strategic alternatives, including potentialmerger, sale or business combination alternatives.

Pursuant to the terms of the Settlement Agreement, at the 2018 annual meeting ofstockholders (the “2018 Annual Meeting”), the Issuer will seek stockholder approval to amend its certificate of incorporation to provide for the declassification of the Board (the“Declassification Amendment”)(which Board is currently divided into three classes, with the members of each class serving staggered three-year terms). If approved at the 2018 Annual Meeting, each director elected at the 2018 Annual Meeting and each director elected at eachfuture annual meeting will be elected for a one-year term such that, commencing with the 2020 Annual Meeting, all directors standing for election at such meeting will be elected for one-year terms. The Issuer has also agreed not to increase the size of the Board above eleven (11)directors at any time prior to the date of the 2019 Annual Meeting without approval of the Monarch Designee.Moreover, if the Declassification Amendment is approved at the 2018 Annual Meeting, the Issuer has agreed that it will not alter the classes to which directors are assigned if the result of any such alteration would be that less than a majority ofthe directors of the Board stand for election at the 2019 Annual Meeting.

Monarch and the Issuer agreed that in the event of the MonarchDesignee’s (as defined below) death, incapacity or resignation due to bona fide cessation to be an employee or an affiliate of Monarch at any time prior to the Termination Date (as defined below), then Monarch will have the right to select areplacement candidate who is reasonably acceptable to the Issuer and satisfies other Board membership criteria (any such replacement designee, a “Replacement Designee”). Such Replacement Designee shall be appointed to the Board andeach committee of the Board on which Mr.Citarrella (or any Replacement Designee, the “Monarch Designee”) served, if any, in substitution for such Monarch Designee to serve the unexpired term of the departed Monarch Designee.

By entering into the Settlement Agreement, Monarch has agreed to cause all shares of Common Stock owned beneficially by the ReportingPersons to be voted at the 2018 Annual Meeting in favor of (i)the Declassification Amendment, (ii)Nicholas J. Sutton, Gary L. Hultquist and Janet W. Pasque as directors for election to the Board, (iii)the Issuer’s “say onpay” proposal with regard to compensation paid to its named executive officers, and (iv)the ratification of the Issuer’s appointment of KPMG LLP as its independent registered public accounting firm for the 2018 fiscal year.

The Issuer has agreed to reimburse Monarch for up to $400,000 in expenses it incurred inconnection with the execution and delivery of the Settlement Agreement and related prior activities.

Pursuant to the terms of theSettlement Agreement, until the Termination Date (as defined below), Monarch agreed, among other things, subject to customary exceptions: (i)not to solicit proxies or written consents of stockholders or assist in any solicitation or any proxy,consent or other authority to vote shares of Common Stock; (ii)not to advise, encourage, support or influence any person with respect to the voting of any securities of the Issuer at the 2018 Annual Meeting, the 2019 Annual Meeting or anyspecial meeting of the Issuer’s stockholders; (iii)not to seek or encourage any person to submit nominations for, or take any other action with respect to the election or removal of directors; and (iv)not to seek representation onthe Board (other than as provided in the Settlement Agreement).

The Settlement Agreement also contains customary mutual non-disparagement provisions that will be in effect until the Termination Date (as defined below).

TheSettlement Agreement will terminate on the earlier of (i)the date Monarch elects to terminate the Settlement Agreement, which it may so elect at any time from and after the date that is the tenth (10th) business day prior to the expiration date of the Issuer’s advance notice period for the nomination of directors at the 2019 Annual Meeting (an “Investor Termination”) and(ii)the date the 2019 Annual Meeting is held (the “Termination Date”). In the event of an Investor Termination, the Monarch Designee will resign immediately upon, and as a condition to, the effectiveness of such termination.

In connection with the Settlement Agreement, Monarch also entered into a non-disclosure agreementwith the Issuer, pursuant to which the Monarch Designee may share certain information about the Issuer with Monarch.

Item5.Interests in Securities of the Issuer

Michael Weinstock’s Monarch Alternative Capital Lp website.

On August, 6. Investors wait Resolute Energy Corporation (NYSE:REN) to announce its quarterly earnings, as reported by Faxor. Last year’s EPS was $0.47, while now analysts expect change of 25.53 % down from current $0.35 EPS. In case of $0.35 EPS REN’s profit could reach $7.96 million. Wall Street sees 150.00 % EPS growth as of August, 6.

REN hit $34.6 during the last trading session after $0.31 change.Resolute Energy Corporation has 791,338 shares volume, 44.99% up from normal. REN is downtrending and has moved 8.49% since May 16, 2017. The stock underperformed the S&P500 by 20.04%.

Resolute Energy Corporation, an independent gas and oil company, engages in the acquisition, exploitation, exploration for, and development of gas and oil properties in the United States.The firm is valued at $786.97 million. The firm holds interests in Permian Basin Properties covering approximately 23,900 gross acres located in the Permian Basin of Texas and southeast New Mexico; and the Aneth Field Properties consisting of approximately 44,000 gross acres situated in the Paradox Basin in southeast Utah.Currently it has negative earnings. As of December 31, 2016, its estimated net proved reserves were approximately 60.3 million barrels of oil equivalent.

Resolute Energy Corporation (NYSE:REN) Ratings Coverage

In total 7 analysts cover Resolute Energy Corp (NYSE:REN). “Buy” rating has 2, “Sell” are 0, while 5 are “Hold”. 29% are bullish. With $45.0 highest and $37.0 lowest price target Resolute Energy Corp has $39.67 average price target or 14.65% above the current ($34.6) price. 9 are the (NYSE:REN)’s analyst reports since November 20, 2017 according to StockzIntelligence Inc. In Monday, December 11 report Northland Capital maintained it with “Buy” rating and $40.0 target. On Wednesday, December 6 the firm has “Buy” rating given by Goldman Sachs. In Monday, April 16 report SunTrust downgraded it to “Hold” rating and $4100 target. On Monday, February 5 the firm earned “Hold” rating by FBR Capital. On Wednesday, March 14 Northland Capital maintained Resolute Energy Corporation (NYSE:REN) with “Buy” rating. On Tuesday, April 3 the stock has “Hold” rating by Seaport Global. On Thursday, April 12 Goldman Sachs downgraded Resolute Energy Corporation (NYSE:REN) to “Neutral” rating.

More recent Resolute Energy Corporation (NYSE:REN) news were posted by Seekingalpha.com, Seekingalpha.com and Globenewswire.com. The first one has “US Shale: NAV Analysis Of Eagle Ford Shale E&Ps” as a title and was posted on May 08, 2018. The next is “US Shale: NAV Analysis Of Anadarko Basin E&Ps” on May 10, 2018. And last was posted on May 01, 2018, called “Resolute Energy Corporation to announce results for the first quarter ended March 31, 2018, will hold an investor …”.

Resolute Energy Corporation (NYSE:REN) Analyst Ratings Chart

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