Shale Daily / Markets / NGI The Weekly Gas Market Report / NGI All News Access

Goodrich, Linn Get New Stock Listings; Bonanza Creek to Exit Chapter 11 Soon

Six months after emerging from bankruptcy protection, common stock in Goodrich Petroleum Corp. began trading on the New York Stock Exchange (NYSE) on Tuesday. Meanwhile, common stock in Linn Energy Inc., which emerged from Chapter 11 in late February, began trading over-the-counter on the OTCQB market on Monday.

A third exploration and production company, Bonanza Creek Energy Inc., announced that a bankruptcy court has approved its reorganization plans and expects to emerge from Chapter 11 before the end of the month.

Houston-based Goodrich announced last week that NYSE had approved its listing under the symbol "GDP," and that its common stock would continue trading on OTCQB until the market closed on Monday. CEO Robert Turnham said the NYSE listing "represents an important corporate milestone since our emergence [from bankruptcy protection]," adding that Goodrich expects "the new listing will enhance trading liquidity and expand the pool of potential investors."

Goodrich began trading on OTCQB after NYSE dropped its listing in January 2016, a consequence of the company defaulting in 3Q2015. After failing to win approval of its restructuring plans from stockholders and noteholders, Goodrich voluntarily filed for Chapter 11 in U.S. Bankruptcy Court for the Southern District of Texas last April. The company had the same assets when it emerged last October but with reduced debt, a new board of directors, $40 million in new capital and new common stock.

Linn, also based in Houston, emerged from the same bankruptcy court on Feb. 28. The company cited a sustained decline in commodity prices when it filed as Linn Energy LLC in May 2016 but was able to emerge as Linn Energy Inc. after agreeing to sell its noncore assets in the Williston and Permian basins, as well as in South Texas and California. It also agreed to spin off Berry Petroleum Co. LLC, a company itacquired in 2013 for $4.3 billion.

Denver-based Bonanza Creek said the U.S. Bankruptcy Court for the District of Delaware had approved its reorganization plans and a rights offering to infuse about $200 million of new liquidity into the company, which voluntarily filed for Chapter 11 three months earlier.

"The court's confirmation of our prepackaged plan represents a significant step toward completing our successful financial restructuring," said Bonanza Creek CEO Richard Carty. "We will emerge as a strong and deleveraged company with a competitive business plan that will position us well vis-à-vis our industry peers."

Bonanza Creek's prepackaged plan received unanimous support from its creditors. The plan also incorporates the terms of the previously announced restructuring support agreement (RSA) with certain noteholders and one of its crude oil purchase and sale counterparties, NGL Crude Logistics LLC, and its parent, NGL Energy Partners LP.

The RSA and prepackaged plan allow Bonanza Creek to equitize $867 million of its existing unsecured bond obligations and bolster its liquidity position through a $200 million rights offering for new equity, to be backstopped by certain unsecured noteholders.

Goodrich is focused primarily on oil and natural gas targets in the Haynesville Shale in North Louisiana and East Texas, the oil window in the Eagle Ford Shale in South Texas, and the Tuscaloosa Marine Shale in eastern Louisiana and southwestern Mississippi. Meanwhile, Linn is primarily focused on stacked plays in Oklahoma -- SCOOP (the South Central Oklahoma Oil Province) and STACK (the Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties).

Bonanza Creek operates in the Wattenberg field of Colorado -- mostly targeting the Niobrara and Codell formations -- and in the Cotton Valley Sands formation in southern Arkansas.

Recent Articles by Charlie Passut