A U.S. bankruptcy court on April 8 approved a $220 million sale of failed Oklahoma shale firm Alta Mesa Resources Inc. after a lengthy delay and renegotiation prompted by the oil-price crash.
Creditors agreed to sell the company to a joint venture between Bayou City Energy Management LLC and Mach Resources LLC, a company founded by U.S. shale pioneer Tom Ward. The price is nearly a third less than creditors had negotiated earlier this year.
Buyers set closing for April 9, a move that an attorney for Alta Mesa creditors slammed as "gamesmanship" for reducing the deal's value by more than $5 million. The price adjusts by $1.75 million for every $1 per barrel change from a $23 per barrel baseline price. The reference price is set two days before closing.
"We are disappointed and frustrated by what we see as gamesmanship by the buyer," attorney Caroline Reckler told the court. The delay came at the end of a day in which the oil reference price "took a tumble," she said.
Bayou City and Mach Resources did not immediately reply to requests for comment on the court approval or the timing of the closing.
Thursday could be a significant day for global oil prices with a scheduled meeting of OPEC to consider coordinated production curbs. Oil prices in March fell to the lowest in nearly two decades, souring an original agreement.
After bankruptcy court Judge Marvin Isgur asked if the two sides would accept an April 10 closing to remove questions about pricing, an attorney for Bayou City opposed the idea and it was dropped.
"I'd resist a temptation to play with the price of oil," said attorney Gregory Pesce. "We're ready to close tomorrow morning."
The court also delayed action on motions seeking to require Bayou City and Mach to either stick to their original $320 million purchase price or face breach of contract claims. Those motions will be dismissed if the closing concludes on April 9, the court said.
Recommended Reading
EQT Buys Private Marcellus E&P Olympus Energy for $1.8B
2025-04-23 - EQT’s acquisition from Blackstone-backed Olympus adds 90,000 net Marcellus and Utica acres and 500 MMcf/d of production.
Ring Energy Slashes 2Q Capex by 50% After Oil Price Collapse
2025-04-25 - Permian E&P Ring Energy is cutting spending and prioritizing debt reduction with oil prices hanging around $65/bbl.
Investment Trends: Family Offices, PE Bet Big on NatGas
2025-07-10 - From shale’s boom to today’s consolidation wave, Stephens' Keith Behrens discusses disciplined capital, M&A drivers and why long-term investors are shifting toward gas-focused plays.
Ex-Parsley Team Re-Ups with Greenlake Energy II, Delaware Deal
2025-05-06 - NGP’s initial investment in Greenlake Energy II, headed by former Parsley Energy executives, includes closing an initial acquisition in the Delaware Basin.
Money Talks: Comerica Bank is ‘Hungry’ for Oil, Gas Business
2025-04-23 - Opportunities may be challenged in the near term, but Comerica Bank remains supportive of oil and gas, says Jeff Treadway, director of energy finance.