Energy & Exploration Partners Emerges from Chapter 11 Restructuring
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Energy and Exploration Partners, LLC and its debtor affiliates (ENXP) has officially concluded its chapter 11 financial reorganization after completing all required actions and satisfying the remaining conditions to effectiveness of its plan of reorganization, which was confirmed by the US Bankruptcy Court for the Northern District of Texas (Fort Worth) by order dated April 26, 2016. By working constructively with its creditors, ENXP emerges from chapter 11 having reduced its total debt by $1.1 billion and with a new capital structure that provides operational flexibility for the company to enhance exploration and development of its assets in the East Texas stacked play. ENXP emerges from chapter 11 five months after filing for bankruptcy protection, and with significant support from its new owners.
In conjunction with its emergence from chapter 11, ENXP also closed on its new $90 million senior secured credit facility, which will provide sufficient liquidity for ENXP after satisfying the company’s debtor-in-possession obligations and other restructuring related expenses. All interest expenses related to this credit facility will be payable in kind. The new credit facility gives ENXP adequate liquidity and flexibility to further invest in its business and to fund its strategic plan.
With the restructuring completed, ENXP can now also dedicate resources to invest in targeted projects to enhance current production volumes and develop other long-term growth options on its East Texas assets. Investments will be based on a prudent allocation of capital that acknowledges the current economic environment facing the industry.
Dr. Peter Hill has been appointed to the role of interim chief executive officer of ENXP. He succeeds B. Hunt Pettit, who left the company in April 2016, after founding ENXP in 2006. Hill has more than 40 years of experience in the international oil and gas industry. Since starting his career, Hill has worked for British Petroleum in various senior positions, including chief geologist, chief of staff for BP Exploration, and regional director for Central and South America, and subsequently held chief executive roles with and served on the boards of directors of a number of exploration and production companies. Hill has a B.Sc. (Honors) and a Ph.D. in geology.
“With this restructuring we have accomplished a great deal. With a stronger balance sheet, access to liquidity and a renewed sense of purpose and focus on simplification, execution and development, I am confident we can capitalize on the value this enterprise is capable of achieving. I want to extend our genuine gratitude to our employees, vendors and customers for their dedication and hard work under very difficult circumstances,” said Hill.
“Thanks to their performance, we maintained operations without interruption and retained the institutional knowledge and expertise needed to move forward,” added Hill.
About Energy and Exploration Partners, LLC
Energy and Exploration Partners, LLC is an independent exploration and production operator based in Fort Worth, Texas, focused on the acquisition, exploration and development of unconventional oil and gas resources. The company’s acreage position is predominately in an oil and liquids-rich basin in east Texas. The company is based in Fort Worth, Texas.
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