Vanguard Natural Resources Inc. filed for Chapter 11 protection on April 1, marking the second time the Houston-based E&P has entered bankruptcy since the 2014 oil crash.
As part of the restructuring, the company said it obtained a $130 million debtor-in-possession financing facility, underwritten by Citibank NA. The financing, subject to court approval, is expected to give the company sufficient liquidity during the Chapter 11 process.
R. Scott Sloan, president and CEO, said in a statement: “The restructuring steps that we have announced today are necessary to attain a capital structure which is suitable for Vanguard’s assets and future business strategy. We are now focused on expediting an efficient in-court restructuring, maintaining our operational momentum and upholding our obligations to our employees and vital vendors and stakeholders.”
RELATED: Vanguard Natural Resources Names Richard Scott Sloan As Founder Scott Smith's Successor
Vanguard had previously entered bankruptcy early 2017, joining a long list of energy firms that had succumbed to weak oil prices at the time. The company emerged from bankruptcy in August 2017, completing its financial restructuring that eliminated about $820 million of debt, and launched plans to sell nearly 10% of its sprawling 774,000 net acres.
Most recently, Vanguard retained EnergyNet for the sale of nonoperated properties across Oklahoma through a sealed-bid offering closing March 19.
Vanguard voluntarily filed petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division.
Kirkland & Ellis LLP is serving as Vanguard’s legal counsel and Evercore Partners is its financial adviser. Opportune LLP is the company’s restructuring adviser.
Recommended Reading
Kimmeridge Fast Forwards on SilverBow with Takeover Bid
2024-03-13 - Investment firm Kimmeridge Energy Management, which first asked for additional SilverBow Resources board seats, has followed up with a buyout offer. A deal would make a nearly 1 Bcfe/d Eagle Ford pureplay.
Laredo Oil Subsidiary, Erehwon Enter Into Drilling Agreement with Texakoma
2024-03-14 - The agreement with Lustre Oil and Erehwon Oil & Gas would allow Texakoma to participate in the development of 7,375 net acres of mineral rights in Valley County, Montana.
SLB’s ChampionX Acquisition Key to Production Recovery Market
2024-04-21 - During a quarterly earnings call, SLB CEO Olivier Le Peuch highlighted the production recovery market as a key part of the company’s growth strategy.
Hess Corp. Boosts Bakken Output, Drilling Ahead of Chevron Merger
2024-01-31 - Hess Corp. increased its drilling activity and output from the Bakken play of North Dakota during the fourth quarter, the E&P reported in its latest earnings.
The OGInterview: Petrie Partners a Big Deal Among Investment Banks
2024-02-01 - In this OGInterview, Hart Energy's Chris Mathews sat down with Petrie Partners—perhaps not the biggest or flashiest investment bank around, but after over two decades, the firm has been around the block more than most.