Published: September 30, 2020 |

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Oasis Petroleum has entered into a restructuring support agreement (RSA) with substantially all of its lenders in Oasis Petroleum’s revolving credit facility and holders of 52 percent of the aggregate principal amount of the company’s bonds on a comprehensive pre-prepackaged restructuring plan to strengthen the company’s balance sheet and significantly reduce its debt.

To implement the plan, Oasis Petroleum and certain of its affiliates today filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas.

Oasis Midstream Partners, an independent legal entity operated as a Master Limited Partnership, and all subsidiaries in which it owns an equity interest are not included in Oasis Petroleum’s Chapter 11 proceedings.

After a thorough review, Oasis Petroleum determined that implementing a restructuring plan through a controlled, court-supervised restructuring is the right path forward. Throughout the financial restructuring process, Oasis Petroleum’s upstream operations and production and Oasis Midstream Partners’ operations are expected to continue as normal, and the companies will continue to prioritize the safety of their employees and communities.

“Oasis Petroleum is a great company with high-quality assets and employees and a well-earned reputation for excellence in environmental stewardship, safety and governance. However, due to historically low global energy demand and commodity prices, we determined that it is best for Oasis Petroleum to take decisive action to strengthen our liquidity and overcome the headwinds now challenging both our company and industry,” said Chairman and Chief Executive Officer, Thomas B. Nusz.

We are confident that we are taking the right steps to position the business for long-term success. We thank our lenders and noteholders for their support, which reflects their confidence in our business and our team, and which will allow us to move quickly through the court-supervised process,” added Nusz.

“We remain committed to the highest standards as it relates to environmental stewardship, safety and operational excellence. We expect to continue our operations as normal and intend to meet our obligations to vendors, and to continue making payments to royalty owners, working interest owners and surface owners on a go-forward basis. We appreciate the support of our financial stakeholders and look forward to quickly emerging from this process as an even stronger company,” concluded Nusz.

The company intends to file customary motions with the court to support Oasis Petroleum’s ongoing operations without interruption, including the payment of employee wages and benefits and paying royalty interest owners, working interest owners and surface owners, in the ordinary course. In addition, vendors and suppliers are expected to be paid in full, and the company intends to seek court approval to pay vendors for all goods and services provided on or after the Chapter 11 filing date in the ordinary course of business.

About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of onshore, unconventional crude oil and natural gas resources in the United States.

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