Southcross Energy Partners LLC emerged from bankruptcy on Feb. 3 with a renewed focus, structure and headquarters.
“Today is the beginning of an exciting new chapter for Southcross,” the company’s newly appointed chairman, Bill Waldheim, said in a statement. “We have a high-quality asset base and are moving forward with an aggressive plan to drive growth by investing in our operations and building out our commercial team and its capabilities.”
After filing for Chapter 11 bankruptcy as an MLP based in Dallas last April, Southcross has reorganized into a Houston-based privately held company focused on gathering and processing in the Eagle Ford Shale region. The company’s assets are located in South Texas and include the Lone Star and Woodsboro gas processing plants, the Bonnie View fractionation facility and the Lancaster and Valley Wells gathering and treating system.
As noted in its Jan. 7 filings with the Bankruptcy Court, Southcross emerged from bankruptcy in a net cash positive position and a restructured balance sheet.
“We have reduced our debt and our new equity owners have taken great care to create the necessary financial flexibility and a capital budget that will enable us to better serve our customers as we make the transition to the emerged Southcross,” Waldheim added in his statement.
Southcross said it expects its headquarters consolidation in Houston to be completed on or before the end of the first quarter this year.
Additionally, Jay Swent will be stepping down as Southcross CEO, a position he had held since September 2018, to pursue other opportunities. Swent will remain with Southcross in an advisory role over the coming weeks, according to a company news release.
Effective immediately, Pat Giroir, a member of the company’s newly reorganized board, will become interim CEO of Southcross. Giroir has more than 30 years of experience, most recently as a senior partner with Mill Rock Capital Management.
Davis Polk & Wardwell LLP and Morris, Nichols, Arsht & Tunnell served as legal counsel to Southcross. Alvarez & Marsal was its restructuring adviser and Evercore ISI provided the company financial advice.
Ingenuity and innovation are delivering steady growth in the U.S. Gulf of Mexico oil and gas industry.
The company said it now plans to produce about 295,000 to 310,000 barrels of oil equivalent per day (boe/d) for the full year, lower than its previous forecast of 310,000 to 325,000 boe/d.
We’ve entered the Tom Petty zone of rig count decline. Talk to drilling contractors and they report business is Free Falling, Free Falling. Tight formation rig count dropped 39 this past week, including 22 in the Permian, five in the Eagle Ford and six in Oklahoma’s Anadarko Basin.