Finance - Buy Backs
The Denver company said it has sufficient cash on hand to fund the purchase price of the notes.
Despite the recent commodity price volatility, the company remains confident in its ability to maintain distributions, CEO says.
The Houston company enacted the program to allow to quickly and efficiently take advantage of any share price volatility in the future.
The offer was funded through proceeds from the parent company’s completed Nov. 14 issuance of $3 billion in senior notes.
Finance - Debt
The commitments now equal the amount under the company’s borrowing base. The borrowing base was reduced by about $61 million in an April 1 redetermination by lenders.
Recapitalization has become a watchword for E&Ps in 2015, with more than $20 billion raised in capital markets to help E&Ps buy time and regain their footing.
Other producers are choosing to restructure, taking a step back from the control levers.
In either case, the goal is to reassure investors and financial backers while positioning to emerge from the downturn stronger, refocused on core strengths and with the capability to seize opportunity in the upcycle.
Dean Swick, Alvarez & Marsal managing director, said the bottom has been reached. Swick has guided more than 100 upstream, midstream and downstream, as well as service companies, through out-of-court and in-court restructurings.
“We are already headed into a new cycle where there are unique and wonderful opportunities awaiting the sector,” Swick said at Hart Energy’s Energy Capital Conference, held in Austin.
Second-priority liens on Halcón's and subsidiary guarantors' assets secure the credit facility, and will also secure the notes. Net proceeds will repay some outstanding borrowings and support general corporate purposes.
Finance - Equity
Tall Oak Midstream II LLC will support midstream opportunities in other North American resource plays while Tall Oak Midstream LLC will continue operating and expanding its Midcontinent U.S. midstream assets.
Capital markets are open, and billions of dollars are flowing into the U.S. energy sector today. Private-equity investors are not seeing many bargains yet, but expect more will come if low commodity prices persist.
CohnReznick Capital Markets Securities LLC announced an expansion of its investment banking services to the oil and gas sector, including the hiring of additional, key personnel.
Fund II will acquire and develop upstream and midstream assets in the U.S. and Canada. The fund closed oversubscribed. To date, it has made three commitments.
Finance - Redemptions
On April 6, the proceeds will redeem US$700 million in long-term debt that matures in 2017 and CA$750 million in long-term debt that matures in 2018.
The redemption price will be 100% of the principal amount, plus accrued and unpaid interest to, but not including, the redemption date of $0.17 per $25.
The notes will be redeemed on Oct. 23, the company said.
They will be redeemed on June 26, Range said.
Finance - Restructuring
Connacher doesn’t have to immediately pay US$128 million loan. Small oil sands developers including Connacher fight for survival with crude trading at just over half its value from June.
After Shell’s $70 billion deal, ExxonMobil and Chevron are in the hunt with several large U.S. E&Ps. But in the Permian Basin, the bid-ask spread remains too wide for deals.
Shell, already one of the world’s largest oil and gas companies, would strengthen its LNG portfolio and gain access to premier offshore Brazil deepwater oil in a mega-merger.
Connacher Oil & Gas Ltd.’s bid to restructure out of court in Canada was rejected after Credit Suisse sued in New York state court, citing Connacher’s loan default, Bloomberg said.