Midcontinent pure-player Gastar Exploration Inc. emerged from bankruptcy protection as a private company on Tuesday, after completing a financial restructuring and eliminating more than $350 million of debt and preferred equity obligations from its balance sheet.
The Houston-based company, now known as Gastar Exploration LLC, said it had satisfied the conditions to reorganize under Chapter 11 that were confirmed last month in U.S. Bankruptcy Court for the Southern District of Texas. CFO Michael Gerlich said the company was now clear to "[move] forward with a solid financial foundation to continue to build our business."
Gastar said it plans to file a Form 15 with the Securities and Exchange Commission (SEC), effectively suspending its reporting obligations under the Securities and Exchange Act. After the filing, the company said it "will no longer be obligated to and will not file any further current or periodic reports with the SEC."
The company reported 550,000 boe of production in 3Q2018, down 4% from the year-ago quarter (572,000 boe). It also reported a net loss of $21.1 million (minus 10 cents/share), compared to a net loss of $15.9 million (minus 8 cents) in 3Q2017.
Gastar entered a restructuring agreement last October with its largest shareholder and only funded-debt creditor, Ares Management LLC, and filed for bankruptcy shortly thereafter. The next month, the company extended its marketing efforts to sell the company entirely, even as it continued with its Chapter 11 proceedings.
The company became a Midcontinent pure-player in 2016 after it sold its Appalachian Basin assets to Tug Hill Inc. for $80 million. It operates in the Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties, aka the STACK.