US-based exploration and production (E&P) company Oasis Petroleum has filed for Chapter 11 bankruptcy protection.
The E&P company is the latest to join a parade of energy companies that have sought protection under chapter 11 after a coronavirus-led slump in oil prices ‘dried up’ available capital in the energy industry.
Oasis Petroleum noted that the bankruptcy filing doesn’t include its Oasis Midstream Partners entity.
The company’s midstream entity remains well capitalised and Oasis said that it would continue to operate normally.
Overall, Oasis Petroleum expects the financial restructuring to reduce its total debt by $1.8bn, which includes all of its senior unsecured notes, as well as senior unsecured convertible notes.
After reemerging from bankruptcy, the company expects to have $340m of borrowings under its credit facility.
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By GlobalDataThe company anticipates completing this restructuring on an ‘accelerated timeframe’, allowing it to emerge from bankruptcy as soon as November this year, following court approval.
Oasis Petroleum chairman and CEO Thomas B Nusz said: “Oasis Petroleum is a great company with high-quality assets and employees and a well-earned reputation for excellence in environmental stewardship, safety and governance.
“However, due to historically low global energy demand and commodity prices, we are determined that it is best for Oasis Petroleum to take decisive action to strengthen our liquidity and overcome the headwinds now challenging both our company and industry.
“We are confident that we are taking the right steps to position the business for long-term success.”
In December 2017, Oasis Petroleum signed an agreement to acquire 20,300 net acres in the Delaware Basin from Forge Energy for around $946m.
