Battered by low commodity prices and operational challenges, Eagle Ford Shale player Sanchez Energy Corp. has filed for bankruptcy.

The move, announced by the Houston-headquartered company on Aug. 11, followed an extensive review of alternatives, the company said. It also comes about five months after the independent E&P was delisted from the New York Stock Exchange and less than a month after it said it was deferring making an interest payment on its 6.125% senior notes due 2023.

Court documents show the company has about $2.85 billion in debt and assets valued at about $2.16 billion as of June 30. Of Sanchez’ 30 largest unsecured claims, Delaware Trust Company topped the list with two unsecured claims totaling about $1.79 billion.

“Over the last year, we have taken proactive steps to address the challenging oil and natural gas price environment, including stabilizing our production profile, improving our capital efficiency and reducing our overall cost structure,” Sanchez Energy CEO Tony Sanchez III said in a statement. “Undergoing a financial restructuring through a voluntary process represents the next phase for Sanchez Energy, as we work with our creditors on a plan to right-size our balance sheet, further invest in our assets and generate long-term value for our stakeholders.”

E&P companies have been under pressure by shareholders to focus on returns instead of growth. But the volatile nature of the oil business, which has seen oil prices rise post-downturn but nowhere near pre-downturn levels, has left some companies—most of which are saddled with debt—struggling to stay afloat.

Sanchez, like its peers, has been challenged to turn profits amid continued market volatility.

Adding to the Sanchez’s woes in first-half 2018 were production declines, which the company worked to overcome through the year.

With the Chapter 11 bankruptcy filing, Sanchez joins a list of 2019 E&P bankruptcies that includes Legacy Reserves, Jones Energy Inc., Vanguard Natural Resources Inc., Arsenal Energy Holdings and a handful of others.

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Sanchez said it has received commitments from senior lenders for $175 million in new financing. The amount includes $25 million the company said will be used to repay borrowings and replace a letter of credit outstanding under its existing revolving credit facility and help support ongoing operations during the restructuring process.

The company also said it has filed customary motions with the court, including one that would allow it to continue operating.

Sanchez reported in May first-quarter 2019 production of 6.9 million barrels of oil equivalent, down 4.6% from the previous quarter, and a net loss of $67.3 million compared to net income of $119.4 million. Most of the loss was attributed to non-cash mark-to-market loss related to commodity derivatives and a $3.9 million non-cash impairment charge.

Formed in 2011, Sanchez Energy is focused on the Eagle Ford Shale in South Texas, where it has 472,000 gross leasehold acres. The company also has acreage in the Tuscaloosa Marine Shale in Mississippi and Louisiana, according to its website.

“Sanchez Energy has assembled a high-quality asset base and has substantial liquidity to continue operating safely and efficiently, while we maintain productive relationships with our business partners and midstream counterparties,” Sanchez said.

He later added, “I am confident in the future of Sanchez Energy.”

Moelis & Co. is Sanchez Energy’s financial advisor for the restructuring, Akin Gump Strauss Hauer & Feld LLP and Jackson Walker LLP serves as legal counsel and Alvarez & Marsal as restructuring advisor.

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