Breitburn Energy Partners LP's nearly two-yearlong bankruptcy has come to a close.
The Los Angeles-based oil and gas company said late April 12 that it successfully completed its Chapter 11 reorganization and has emerged as a newly-formed company owned and managed by EIG Global Energy Partners.
Now operating as Maverick Natural Resources LLC, the new company’s portfolio currently includes roughly 1 million gross (600,000 net) acres and 11,500 gross (7,600 net) wells across the Midwest, Ark-La-Tex, Rockies, California, Permian Basin, Southeast and the Midcontinent regions.
In total, the company eliminated about $2.855 billion of debt through the restructuring process and began operating as Maverick on April 6. Halbert S. Washburn will remain at the helm of the company as CEO.
“Today marks a new beginning for our company and all of our stakeholders and the end of a difficult period managing through the steep and sustained decline in oil and natural gas prices,” Washburn said in a statement. “Throughout the extended restructuring process, we remained focused on our key goals of managing production and reducing costs to preserve the value of our diverse and long-lived portfolio, substantially reducing debt and dramatically improving our liquidity position, and achieving a consensual plan of reorganization among our key creditor groups. I would like to thank our outstanding employees for their unwavering commitment throughout the restructuring process.”
Production from Maverick’s assets averaged 39,742 barrels of oil equivalent per day (boe/d) in 2017. Its portfolio has estimated proved reserves of 152.2 million boe, roughly 97% of which are proved developed reserves with a proved reserve life index averaging more than 10 years.
Clayton Taylor, managing director of EIG said in a statement: “Maverick will emerge with low leverage, a simple balance sheet, and sufficient liquidity to remain adaptive to the ever-changing market conditions. Following a judicious review of the asset portfolio and cost structure, we believe Maverick is well-positioned to capitalize on cost reduction initiatives, to deploy capital to high growth prospects and to potentially build the platform through strategic acquisitions.”
Breitburn had filed for Chapter 11 bankruptcy in 2016 with a debt balance of $2.96 billion.
As a result of the restructuring process, Maverick has debt of about $105 million and roughly $295 million of additional borrowing capacity under a new bank credit facility.
Maverick has a five-member board of directors comprised of Washburn and Taylor as well as: William C. Sonneborn, EIG president; Terence Jupp, EIG managing director and COO of Harbour Energy Ltd.; and Jeff Serota, vice chairman of Corbel Capital Partners and senior advisor for Willow Tree Credit Partners.
EIG specializes in private investments in energy and energy-related infrastructure on a global basis and has $17.7 billion under management as of year-end 2017, according to the company press release.