Oil and gas producer Sable Permian Resources on June 25 filed for Chapter 11 bankruptcy protection in the Southern District of Texas, hit by a slump in oil prices as the COVID-19 pandemic hurts fuel demand.
The Houston-based company said it had secured debtor-in-possession (DIP) financing of $150 million to fund its operations during the restructuring and that it was working with advisers and stakeholders on a range of alternatives.
The company was created last year when Aubrey McClendon's American Energy - Permian Basin LLC, a company he founded in 2014 shortly after being ousted from Chesapeake Energy Corp., merged with its parent company in an attempt to avoid bankruptcy.
McClendon died in 2016 in a fiery one-car crash in Oklahoma. He built Chesapeake from a small wildcatter into one of the world's biggest natural gas producers before resigning in 2013, after a corporate governance crisis and investor concerns over his heavy spending.
Chesapeake Energy is itself widely expected to file for bankruptcy under the weight of too much debt and the drop in energy demand and prices.
Texas congressional candidate Wesley Hunt gives his take on the importance of oil and gas and what makes the new 38th Congressional District the “energy district of the world.”
"I reject the contention that the strategy is unlawful because the definition of 'economically recoverable' was irrational. It follows that the claimants' claim fails and is dismissed," Judge Sara Cockerill said in the ruling document.
The oil major is developing "comprehensive roadmaps to reduce greenhouse gas emissions" from its operated assets around the world, Exxon's Chairman and CEO Darren Woods, said in a statement.