Chaparral Energy said March 21 it successfully completed its reorganization agreement and emerged from bankruptcy with more than $100 million in liquidity.
In May 2016, Chaparral filed voluntary petitions for Chapter 11 bankruptcy in the U.S. Bankruptcy Court of Delaware. As part of the reorganization, the company converted $1.2 billion of pre-petition debt to equity and eliminated about $100 million of annual interest expense.
Chaparral’s new capital structure includes its cash on hand, a reserve-based lending facility with an initial borrowing base of $225 million and an additional $150 million term loan. Both the revolver and loan will mature in four years. The company also received an additional $50 million in cash from an equity offering.
RELATED: Chaparral Aims For Pipeline Sale In Push To Exit Bankruptcy
The Oklahoma City-based company's emergence from bankruptcy "marks a new and prosperous time in Chaparral's storied history," said K. Earl Reynolds, Chaparral CEO.
“Our balance sheet now provides the stability and opportunity needed to focus our operations on developing our approximate 100,000 net acre position in the Stack Play," Reynolds said in a statement. "With more than 5,000 potential Stack locations and one of the industry’s lowest operating cost structures, we are well-positioned to generate significant returns for Chaparral and our investors in the near- and long-term future."
In November, Reynolds succeeded Mark A. Fischer as CEO and board chairman at Chaparral following Fischer's retirement. Fischer, who founded the company in 1988, served as its CEO and chairman since its inception.
In addition, the company’s new board of directors became effective March 21 and includes Reynolds, Douglas Brooks, Matt Cabell, Robert Heinemann, Sam Langford, Ken Moore and Gysle Shellum.
Chaparral was advised through the reorganization process by financial adviser Evercore, restructuring adviser Opportune LLP and the law firm of Latham & Watkins LLP.
Recommended Reading
US Drillers Add Oil, Gas Rigs for Second Week in a Row
2024-01-26 - The oil and gas rig count, an early indicator of future output, rose by one to 621 in the week to Jan. 26.
Second Light Oil Discovery in Mopane-1X Well
2024-01-26 - Galp Energia's Avo-2 target in the Mopane-1X well offshore Namibia delivers second significant column of light oil.
E&P Highlights: Jan. 29, 2024
2024-01-29 - Here’s a roundup of the latest E&P headlines, including activity at the Ichthys Field offshore Australia and new contract awards.
Seadrill Awarded $97.5 Million in Drillship Contracts
2024-01-30 - Seadrill will also resume management services for its West Auriga drillship earlier than anticipated.
Oceaneering Won $200MM in Manufactured Products Contracts in Q4 2023
2024-02-05 - The revenues from Oceaneering International’s manufactured products contracts range in value from less than $10 million to greater than $100 million.