Dallas-based Azure Midstream Partners LP, affiliates and certain subsidiaries filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court for the Southern District of Texas. The company said it anticipates filing a motion to approve procedures for a sale of all or substantially all of its assets, as well as a Chapter 11 plan and accompanying statement shortly. The company said it has reached an agreement on the process with lenders. Day-to-day operations are expected to continue until a sale. The company has assets in Louisiana and Texas, including in the Haynesville Shale and Cotton Valley. “…Chapter 11 reorganization is the only solution that maximizes going concern value for all stakeholders,” said CEO Chip Berthelot. “We will continue to operate the company and proceed through this process in a way that best preserves asset value for everyone with an interest.” These bankruptcy filings do not involve Azure’s parent company, Azure Midstream Energy.
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Pure Bakken Players Sticking Around
A long-time fixture among Williston Basin exploration and production companies, Denver-based SM Energy Co. said earlier this month it is selling its remaining Bakken assets in North Dakota to concentrate on Texas acreage. But others are staying in the Bakken.
Former MarkWest CEO Chastises Marathon Petroleum Plans For Midstream Business
MarkWest Energy Partners LP co-founder and former CEO John Fox has sent a letter to Marathon Petroleum Corp. (MPC) urging against its plans for the accelerated dropdown of refining assets to its midstream partnership, MPLX LP.
Brief — SM Energy
SM Energy Co. is selling its Divide County, ND, assets in the Williston Basin. Assuming an acceptable offer is received, the Denver-based producer expects to close a deal around the middle of the year. December production from the assets was 10,700 boe/d. “This sale process continues our drive to generate differential shareholder value through concentrating our capital spending on top-tier asset development,” said CEO Jay Ottoson. “Over the next few years, we intend to focus on generating significant high-margin production growth from our operated acreage positions” within the Permian Basin’s Midland sub-basin and the Eagle Ford Shale. “We expect that the sale proceeds from this planned exit of the Williston Basin and from the pending sale of our nonoperated Eagle Ford assets will allow us to fully fund our drilling program, while providing us with significant liquidity and the ability to reduce our outstanding debt.” Based on acreage and flowing production, Wells Fargo Securities LLC analysts estimated the property value at around $574 million.
Abraxas Petroleum Closes Sale of Powder River Basin Stake
With a focus on the Bakken in North Dakota and Texas properties, San Antonio-based Abraxas Petroleum Corp. is starting its exit from the Powder River Basin (PRB) in Wyoming and Montana as it closed an $11.1 million sale of PRB assets last Tuesday.
Rex Energy Exits Southeast Ohio with Utica Sale to Antero
Rex Energy Corp. said Wednesday it has executed another key divestment, agreeing to sell its Warrior South assets in Southeast Ohio to Antero Resources Corp. for $30 million.
SM Energy Selling Non-Operated Eagle Ford Assets
SM Energy Co. has agreed to sell non-operated Eagle Ford Shale assets, including its interest in related midstream infrastructure, to a unit of Venado Oil and Gas LLC, which is an affiliate of KKR, for $800 million.
Anadarko Exits Marcellus Shale In Ongoing Shift From NatGas
Anadarko Petroleum Corp. reinforced its move away from natural gas this week, announcing it would exit the Marcellus Shale with the sale of its upstream and operated midstream assets for $1.24 billion to a subsidiary of privately-owned Alta Resources Development LLC, giving that company re-entry to the play.
NGL Energy Acquiring SCOOP/STACK, Gulf Coast NGL Assets
NGL Energy Partners LP is picking up natural gas liquids (NGL) assets in Louisiana and Oklahoma from the bankruptcy of Murphy Energy Corp.
Precision Adds Rigs, Canadian Workforce in Asset Swap With Essential Energy
Calgary-based operators Precision Drilling Corp. and Essential Energy Services Ltd. have agreed to swap some oilfield service assets, which would expand Precision’s rig operations and workforce in Canada while Essential would add coil tubing and pumping services.