Houston-based Oasis Petroleum Inc., which works the Permian and Williston basins, has completed a financial restructuring and emerged from bankruptcy.

Oasis

The independent, which filed for Chapter 11 protection in late September, said it has reduced its prepetition debt by $1.8 billion. It is trading on Nasdaq under “OAS.”

“Oasis is now uniquely positioned with a best-in-class balance sheet, a quality and sustainable long-lived asset base, and a rigorous new capital discipline that should translate into long-term value creation for our shareholders,” Chairman Douglas E. Brooks said. The new direction is to be executed within a “strong” environmental social and governance, or ESG, culture “to provide value for all stakeholders.”

The offices of the CEO and nonexecutive chairman have been separated, Brooks said, “to reflect the broader strategic issues including, but not limited to, balancing cash returns and growth initiatives while maintaining operational excellence and sound environmental stewardship.”

CEO Thomas B. Nusz said Oasis emerged from bankruptcy “as an even stronger company with an intense focus on generating sustainable returns and positive free cash flow coupled with a sharp goal of creating long term value for our shareholders. These outcomes will be achieved by further cost reductions, new efficiencies and strategic repositioning to reflect the current industry conditions.”

The capital structure includes a new $575 million reserve-based revolving credit facility maturing in May 2024. Unsecured claims, including holders of senior unsecured notes, received their proportionate distribution of 100% of newly issued common stock. Sixty million shares were authorized.

Under the plan, $1.8 billion in pre-petition senior unsecured notes were equitized resulting in $112.5 million in annual interest savings.

Tudor, Pickering, Holt & Co. and Perella Weinberg Partners were financial advisers, with Kirkland & Ellis LLP as legal adviser and AlixPartners LLP the restructuring adviser.