FORESTAR GROUP INC. (NYSE:FOR) Files An 8-K Entry into a Material Definitive Agreement

Item 1.01. Entry into Material Definitive Agreement.

On February17, 2017, Forestar (USA) Real Estate Group Inc., a
Delaware corporation (FUSA) and wholly-owned subsidiary of
Forestar Group Inc. (the Company), entered into a Purchase and
Sale Agreement (the Agreement) with Mineral Resources Partners,
LLC, a Delaware limited liability company (MRP), to sell all of
FUSAs interests in the following entities: (i)Forestar Oil Gas
LLC, a Delaware limited liability company, (ii)Forestar Minerals
Holdings LLC, a Delaware limited liability company, and
(iii)Forestar Minerals GP LLC, a Delaware limited liability
company (collectively, the Minerals Companies). The Minerals
Companies directly or indirectly own substantially all of the
Companys remaining oil and gas assets, consisting principally of
approximately 519,450 net acres of fee minerals in Texas,
Louisiana, Alabama and Georgia.

The transaction closed on February17, 2017 for a total purchase
price of $85,600,000, of which $75,000,000 was received at
closing. The balance of the purchase price is being held in a
third-party escrow account pending completion of (a)title review,
and (b)transfer of certain mineral interests owned by a venture
in which FUSA is a member (Venture Minerals). Prorations of
operating revenues and expenses will be made utilizing an
effective date of January1, 2017. The Agreement also contains
representations, warranties and indemnities customary for oil and
gas industry entity and asset sale and purchase transactions, and
includes purchase price adjustment provisions, within certain
parameters, relating to title and failure or inability to
transfer the Venture Minerals.

This summary is qualified in its entirety by reference to the
Agreement, which is attached as Exhibit10.1 and incorporated by
reference.

Item 5.02. Departure of Directors or Certain Officers;
Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers.

On February23, 2017, the Company announced that David M. Grimm,
Chief Administrative Officer, Executive Vice President, General
Counsel and Secretary, will retire effective March31, 2017, after
25 years of service to the Company and its predecessors.

Item 9.01.Financial Statements and
Exhibits.

(d) Exhibits

About FORESTAR GROUP INC. (NYSE:FOR)

Forestar Group Inc. is a residential and mixed-use real estate development company. The Company operates through three segments: Real Estate, Oil and Gas, and Other Natural Resources. Its Real Estate segment secures entitlements and develops infrastructure on its lands for single-family residential and mixed-use communities, and manages its undeveloped land, commercial and income producing properties, mainly a hotel and its multifamily properties. Its Oil and Gas segment is an independent oil and gas exploration, development and production operation and manages its owned and leased mineral interests. Its Other Natural Resources segment manages its timber, recreational leases and water resource initiatives. The Company owns directly or through ventures interests in approximately 60 residential and mixed-use projects consisting of over 7,000 acres of real estate located in approximately 10 states and approximately 20 markets.

FORESTAR GROUP INC. (NYSE:FOR) Recent Trading Information

FORESTAR GROUP INC. (NYSE:FOR) closed its last trading session down -0.10 at 13.00 with 107,278 shares trading hands.