AUSTIN, Texas--(BUSINESS WIRE)--Jan. 6, 2015--
Forestar Group Inc. (“Forestar”) (NYSE: FOR) today issued the following
statement in response to the letter issued by SpringOwl Asset Management
LLC (“SpringOwl”) and Cove Street Capital LLC (“Cove Street”):
The Forestar Board of Directors and management team are committed to
maximizing shareholder value. To that end, as announced on December 8,
2014, Forestar is fully engaged in exploring strategic alternatives to
enhance shareholder value, including a review of the oil and gas
Forestar is committed to strong corporate governance and its board is
comprised of eleven highly qualified directors, ten of whom are
independent. Each of Forestar’s directors possess exemplary industry
knowledge, financial expertise and executive level management experience.
Forestar has engaged in an open dialogue with SpringOwl and Cove Street.
The company has maintained, and will continue to encourage, open
communication with all Forestar shareholders.
Forestar has a strong portfolio of assets in the right locations and an
experienced board and leadership team committed to delivering results
and maximizing long-term shareholder value.
About Forestar Group
Forestar Group Inc. operates in three business segments: real estate,
oil and gas and other natural resources. At third quarter-end 2014, the
real estate segment owns directly or through ventures almost 120,000
acres of real estate located in ten states and 13 markets in the U.S.
The real estate segment has 11 real estate projects representing
approximately 24,400 acres currently in the entitlement process, and 73
entitled, developed and under development projects in eight states and
13 markets encompassing over 11,300 acres, comprised of almost 17,800
planned residential lots and approximately 2,000 commercial acres. The
oil and gas segment includes approximately 948,000 net acres of oil and
gas mineral interests, with approximately 590,000 acres of fee ownership
located principally in Texas, Louisiana, Alabama, and Georgia and
approximately 358,000 net acres of leasehold interests principally
located in Nebraska, Kansas, Oklahoma, North Dakota and Texas. These
leasehold interests include about 8,000 net mineral acres in the core of
the prolific Bakken and Three Forks formations. The other natural
resources segment includes sale of wood fiber and management of our
recreational leases, and approximately 1.5 million acres of groundwater
resources, including a 45% nonparticipating royalty interest in
groundwater produced or withdrawn for commercial purposes from
approximately 1.4 million acres in Texas, Louisiana, Georgia and Alabama
and about 20,000 acres of groundwater leases in central Texas.
Forestar’s address on the World Wide Web is www.forestargroup.com.
This release contains “forward-looking statements” within the meaning of
the federal securities laws. Forward-looking statements are typically
identified by words or phrases such as “will,” “anticipate,” “estimate,”
“expect,” “project,” “intend,” “plan,” “believe,” “target,” “forecast,”
and other words and terms of similar meaning. These statements reflect
management’s current views with respect to future events and are subject
to risk and uncertainties. We note that a variety of factors and
uncertainties could cause our actual results to differ significantly
from the results discussed in the forward-looking statements, including
but are not limited to: general economic, market, or business
conditions; changes in commodity prices; opportunities (or lack thereof)
that may be presented to us and that we may pursue; fluctuations in
costs and expenses including development costs; demand for new housing,
including impacts from mortgage credit rates or availability; lengthy
and uncertain entitlement processes; cyclicality of our businesses;
accuracy of accounting assumptions; competitive actions by other
companies; changes in laws or regulations; and other factors, many of
which are beyond our control. Except as required by law, we expressly
disclaim any obligation to publicly revise any forward-looking
statements contained in this news release to reflect the occurrence of
events after the date of this news release.
Source: Forestar Group Inc.
Forestar Group Inc.
Anna E. Torma, 512-433-5312