Energy and Exploration Partners Inc. (ENXP) has filed a voluntary petition under Chapter 11 of the US Bankruptcy Code.
To fund its operations during the restructuring process, ENXP secured commitments for up to $135 million of new debtor-in-possession financing from a group of its existing senior lenders, subject to court approval. This filing also converts the previously announced involuntary petition for ENXP Operating LP filed by certain vendors into a voluntary petition. ENXP believes the Chapter 11 process provides it the greatest flexibility to continue its operations during the current period of depressed prices for oil and natural gas and adverse operating conditions.
ENXP continues to work closely with its suppliers and business partners to ensure that its business continues uninterrupted. The company fully expects to continue producing oil and gas and maintain adequate staff.
In conjunction with the Nov. 7 filings, the company requested customary relief to support its royalty owners, partners, and employees during the process. As part of this relief, the company asked the Court for permission to continue employee programs and mineral interest owner payments without interruption. The company remains in ongoing, productive dialogue with its creditors and other stakeholders regarding the terms of the restructuring.
Prior to this voluntary filing, ENXP initiated a reduction in staffing to match its personnel levels with its expected activity levels in the current commodity price environment. Several senior executives also resigned to pursue other interests. Those include Executive Vice President Business Operations & Development Robert Karpman, Executive Vice President of Acquisitions and Divestitures David Patty, COO John Richards, Chief Accounting Officer Jim Howe, and CFO Brian Nelson. The company welcomes John Castellano of AlixPartners LLP as interim CFO. The other roles will be covered by existing personnel during the restructuring process.
ENXP’s legal advisor is Bracewell & Giuliani LLP, and the company has engaged AlixPartners LLP as its restructuring advisor. Evercore has been retained as ENXP's investment banker.
ENXP is an independent exploration and production operator based in Fort Worth, Texas, focused on the acquisition, exploration, and development of unconventional oil and gas resources. Its acreage position is diversified across two oil and liquids-rich basins in the US: the East Texas Basin and the Denver-Julesburg Basin.