Energy & Exploration Partners’ Third Amended Joint Plan of Reorganization, which contains technical and confirmation modifications, became effective; and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on April 26, 2016.
According to a corporate release, the Company exits 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.” In conjunction with its emergence, Energy & Exploration Partners also closed on its new $90 million senior secured credit facility, which will provide sufficient liquidity for the Company after satisfying its debtor-in-possession obligations and other restructuring related expenses. All interest expenses related to this credit facility will be payable in kind.
The Company also announced the appointment of Dr. Peter Hill to the role of interim C.E.O., succeeding B. Hunt Pettit (who left the Company in April 2016). Since starting his career, Dr. 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. Dr. Hill has a B.Sc. (Honors) and a Ph.D. in Geology.
“With this restructuring we have accomplished a great deal,” comments Dr. Hill. “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.” This unconventional oil and gas resources developer filed for Chapter 11 protection on December 7, 2015, listing $1.4 billion in pre-petition assets.
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