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.
In an unpredictable market, newly minted E&Ps have abandoned the old models of building ready-to-drill assets and instead are forging ahead with new models, operating strategies and leaders.
The discussion with Tom Petrie, chairman of Petrie Partners, continues as he looks at U.S. shale going forward and the future of OPEC in a new price environment.
Leonid Mikhelson, the head of Russia's Novatek said on Jan. 25 that LNG from the United States as its chief threat, Interfax news agency reported.