Houston-based EV Energy Partners LP on Monday said it successfully navigated its financial restructuring and has emerged from Chapter 11 as Harvest Oil & Gas Corp.
The rebranded explorer holds assets in the Barnett Shale, Permian, San Juan and Appalachian basins, Michigan, Central and South Texas, the Midcontinent and the Monroe Field in Northern Louisiana.
The upstream master limited partnership of EnerVest Ltd. agreed in March to restructure in a prepackaged bankruptcy filing. EnerVest did not seek bankruptcy protection. The rebranded company is beginning a new chapter, said Harvest CEO Michael E. Mercer.
“With significantly less debt, we have ample liquidity and expect to generate free cash flow in excess of our planned capital requirements. We are confident that our diverse asset base will serve as a foundation for our future success.”
The board is to be comprised of management, as well as direct or appointed representatives of the largest shareholders, including Mercer, James F. Murchison, Colby Dunn, Steven J. Pully and Patrick Hickey.
Through the restructuring, Harvest eliminated about $355 million of debt and enhanced its financial flexibility. The company entered into an amended and restated credit facility with an initial borrowing base of $325 million. The first scheduled redetermination is next April. With total debt outstanding of $297 million and cash on hand of about $21 million, total liquidity would be about $46 million.
With completion of the restructuring, Harvest would have 10 million shares of common stock outstanding. Stock would be traded on the OTC Pink Market under “HVST.”