Gulfport Energy Corp. filed for Chapter 11 bankruptcy protection Friday, becoming the latest exploration and production (E&P) company this year to succumb to low commodity prices made worse by the Covid-19 pandemic. 

Gulfport

The company said it has the support of 95% of its revolving credit facility lenders and other creditors holding over two-thirds of its senior unsecured bonds for a restructuring plan that would wipe out $1.25 billion of debt.

The company has shut in production, cut spending significantly and sold noncore assets in recent years to help reduce debt, but CEO David Wood, who took over in 2018 and reshaped the management team, said the company’s “large legacy debt burden” and its “legacy firm transportation commitments created a balance sheet and cost structure...