With a new $320 million bankroll, Swift Energy Co. has completed restructuring, ending its bankruptcy less than four months after filing for Chapter 11 bankruptcy protection, the company said April 25.
The company emerges transformed with Texegy LLC agreeing to purchase a 75% working interest in the South Bearhead Creek and Burr Ferry fields in Central Louisiana, essentially taking over the company.
The deal includes oil-weighted fields in Louisiana spanning 62,000 acres and foots Swift $320 million in breathing room.
Swift Energy CEO Terry Swift said that by leaving bankruptcy behind it was entering a new era.
While excited to have the process in the past, “we must continue in our efforts to further improve our operations and maximize the value of our assets,” he said. “We face the future with a renewed sense of energy and enthusiasm and look forward to working with our new board of directors and investor base to execute on our strategic plans.”
Who’s In Charge?
Partly, Swift Energy’s new phase will mean note holders will own nearly all of the company. Creditors forgave loans in exchange for a 96% stake in the company.
Swift said he was pleased to announce the successful completion of the company’s restructuring in a relatively short span of time.
“Through this restructuring, we have developed a more disciplined, efficient organization and greatly improved our balance sheet,” he said.
Swift looks set to remain at the company that bears his family’s name.
He will continue as CEO and retain a director position following reorganization, bankruptcy documents show. A new non-officer chairman of the board will be appointed by the new majority equity group along with a new majority of members that the company picks.
Houston’s Swift Energy was founded in 1979 and focused on oil and natural gas reserves onshore in Texas and Louisiana and in the inland waters of Louisiana.
In November, two months before filing for bankruptcy, Swift struggled to grow production while keeping spending down, Barclays said. Outspending cash flow by an estimated $117 million in 2015 created a vacuum that sucked down the debt heavy company.
Louisiana Purchase
With the South Bearhead Creek and Burr Ferry fields largely sold, the company’s Eagle Ford (EF) position remains the focal point of Swift’s portfolio.
Texegy will be focused on acquiring, developing and operating oil and gas assets in Texas and Louisiana.
Rajan Ahuja, CEO of Texegy, said Swift’s assets are exactly what they seek out: conventional oil and gas producing assets with significant upside.
“We are confident that we can simultaneously increase daily production and reserves in the ground at reasonable cost which will prove profitable even at $40 oil price,” Ahuja said.
Darren Barbee can be reached at dbarbee@hartenergy.com.
Recommended Reading
Spate of New Contracts Boosts TechnipFMC's Subsea Profits
2024-04-30 - TechnipFMC's operational profits are growing as the company heightened its focus on “quality” subsea orders, which earned $2.4 billion for the first quarter.
Message in a Bottle: Tracing Production from Zone to Wellhead
2024-04-30 - New tracers by RESMAN Energy Technology enable measurement while a well is still producing.
Defeating the ‘Four Horsemen’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production—and keep the cash flowing.
Tech Trends: AI Increasing Data Center Demand for Energy
2024-04-16 - In this month’s Tech Trends, new technologies equipped with artificial intelligence take the forefront, as they assist with safety and seismic fault detection. Also, independent contractor Stena Drilling begins upgrades for their Evolution drillship.
AVEVA: Immersive Tech, Augmented Reality and What’s New in the Cloud
2024-04-15 - Rob McGreevy, AVEVA’s chief product officer, talks about technology advancements that give employees on the job training without any of the risks.