U.S. onshore-focused Maverick Natural Resources LLC said it has begun operating after emerging from Chapter 11 as a successor to Breitburn Energy Partners LP.
Breitburn had filed for voluntary bankruptcy in 2016. Maverick, based in Los Angeles, now is majority owned and controlled by funds and accounts managed by EIG Global Energy Partners.
“Maverick will emerge with low leverage, a simple balance sheet, and sufficient liquidity to remain adaptive to the ever-changing market conditions,” said EIG Managing Director Clayton Taylor. “Following a judicious review of the asset portfolio and cost structure, we believe Maverick is well positioned to capitalize on cost reduction initiatives, to deploy capital to high growth prospects and to potentially build the platform through strategic acquisitions.”
As a result of the restructuring process, Maverick has debt of about $105 million, compared to Breitburn’s $2.96 billion debt balance prior to initiating the restructuring process. Maverick also has about $295 million of additional borrowing capacity under a new bank credit facility.
The restart “marks a new beginning for our company and all of our stakeholders and the end of a difficult period managing through the steep and sustained decline in oil and natural gas prices,” said Maverick CEO Halbert S. Washburn. “Throughout the extended restructuring process, we remained focused on our key goals of managing production and reducing costs to preserve the value of our diverse and long-lived portfolio, substantially reducing debt and dramatically improving our liquidity position, and achieving a consensual plan of reorganization among our key creditor groups.”
Last year the company operated about 88% of its production and averaged 39,742 boe/d. Estimated proved reserves are 152.2 million boe, 97% of which are proved developed reserves with a proved reserve life index averaging more than 10 years. Maverick controls about 600,000 net acres across the onshore, with about 7,600 net wells.