Vanguard Natural Resources Inc. filed for Chapter 11 protection on April 1, marking the second time the Houston-based E&P has entered bankruptcy since the 2014 oil crash.
As part of the restructuring, the company said it obtained a $130 million debtor-in-possession financing facility, underwritten by Citibank NA. The financing, subject to court approval, is expected to give the company sufficient liquidity during the Chapter 11 process.
R. Scott Sloan, president and CEO, said in a statement: “The restructuring steps that we have announced today are necessary to attain a capital structure which is suitable for Vanguard’s assets and future business strategy. We are now focused on expediting an efficient in-court restructuring, maintaining our operational momentum and upholding our obligations to our employees and vital vendors and stakeholders.”
RELATED: Vanguard Natural Resources Names Richard Scott Sloan As Founder Scott Smith's Successor
Vanguard had previously entered bankruptcy early 2017, joining a long list of energy firms that had succumbed to weak oil prices at the time. The company emerged from bankruptcy in August 2017, completing its financial restructuring that eliminated about $820 million of debt, and launched plans to sell nearly 10% of its sprawling 774,000 net acres.
Most recently, Vanguard retained EnergyNet for the sale of nonoperated properties across Oklahoma through a sealed-bid offering closing March 19.
Vanguard voluntarily filed petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division.
Kirkland & Ellis LLP is serving as Vanguard’s legal counsel and Evercore Partners is its financial adviser. Opportune LLP is the company’s restructuring adviser.
Recommended Reading
Could Crescent, SilverBow Buy More in South Texas After $2.1B Deal?
2024-05-17 - The combination of Crescent Energy and SilverBow Resources will yield one of the Eagle Ford’s top producers—and the pro forma E&P could look to gobble up more acreage in South Texas after closing.
Crescent Point Divests Non-core Saskatchewan Assets to Saturn Oil & Gas
2024-05-07 - Crescent Point Energy is divesting non-core assets to boost its portfolio for long-term sustainability and repay debt.
Brett: Oil M&A Outlook is Strong, Even With Bifurcation in Valuations
2024-04-18 - Valuations across major basins are experiencing a very divergent bifurcation as value rushes back toward high-quality undeveloped properties.
SilverBow Gears Up for Proxy Fight with Kimmeridge
2024-04-09 - Both SilverBow Resources and Kimmeridge Energy Management have proposed a slate of candidates for the board of directors with a vote set for May 21.
Kimmeridge-SilverBow Public Feud Gets Ugly as Firm Suggests New Directors
2024-04-01 - Kimmeridge Energy Management said in a letter that should SilverBow continue to “stonewall” consideration of a merger offer, shareholders should elect three new independent board members.