Harbinger Group Inc.
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8-K
HRG GROUP, INC. filed this Form 8-K on 12/03/2015
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Exhibit


Exhibit 99.1
 
HRG GROUP, INC.

Unaudited Pro Forma Condensed Consolidated Financial Information
 
On December 1, 2015, Compass Energy Operating, LLC (“Compass”), a wholly-owned subsidiary of HRG Group, Inc. (“HRG”; NYSE: HRG), consummated the transactions contemplated by its previously announced purchase agreement, dated October 8, 2015 (the “Purchase Agreement”), with Indigo Resources LLC (as successor to Indigo Minerals LLC, “Buyer”). Pursuant to the Purchase Agreement, Buyer acquired certain of Compass’ oil and gas interests located in the Holly, Waskom and Danville Fields in East Texas and North Louisiana (the “Transaction”). Proceeds from the Transaction, which were approximately $147.5 million, less estimated expenses of $1.9 million, were used to primarily reduce borrowings under Compass’ existing credit facility.
The following unaudited pro forma condensed consolidated financial information is derived from HRG’s historical consolidated financial statements.
The unaudited pro forma condensed consolidated balance sheet as of September 30, 2015 gives effect to the disposition of the Holly, Waskom, and Danville assets and the repayment of the portion of Compass’ existing credit facility as if they had occurred on September 30, 2015. The unaudited pro forma condensed consolidated statement of operations for the year ended September 30, 2015 reflects the disposition of the Holly, Waskom, and Danville assets and the repayment of the portion of Compass’ existing credit facility as if they had occurred on October 1, 2014.
On October 31, 2014, HRG, through its wholly-owned subsidiary HGI Energy Holdings, LLC (“HGI Energy”), acquired approximately 25.5% interests in Compass that it did not previously own from EXCO Resources, Inc., upon which HGI Energy became the owner of 99.8% of the economic interest in Compass. Prior to this acquisition, HRG’s ownership of Compass was 74.4%. As a result, prior to October 31, 2014, the operating results of Compass represent HRG’s 74.4% proportionate interest while operating results after October 31, 2014 represent 100.0% of Compass’ consolidated results. 
This unaudited pro forma condensed consolidated financial information should be read in conjunction with our Annual Report on Form 10–K for the year ended September 30, 2015.
This unaudited pro forma condensed consolidated financial information is provided for illustrative purposes only and is not necessarily indicative of the results of operations that would have occurred had the disposition been effected on the assumed dates, nor is it necessarily indicative of our future operating results.



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