Energy XXI files bankruptcy, restructuring

Energy XXI Ltd., an independent oil and gas producer active in South Louisiana and the Gulf of Mexico, has filed for voluntary bankruptcy to accommodate a restructuring it says will allow operations to continue.

The company and some of its subsidiaries entered a restructuring support agreement with holders of more than 63% of secured second-lien notes. The agreement eliminates nearly all funded indebtedness previously in place other than a first-lien reserve-based loan facility.

The company is negotiating with a steering committee of lenders representing first-line indebtedness not part of the restructuring agreement.

Energy XXI said the restructuring will remove more than $2.8 billion in debt from its balance sheet. John Schiller remains president and chief executive officer.

“The company believes it has sufficient liquidity, including approximately $180 million of cash on hand as of Mar. 31, 2016, and funds generated from ongoing operations, to continue its operations and support the business in the ordinary course during the financial restructuring process,” a company statement said.

Energy XXI reported average production in the last calendar quarter of 2016 of 54,500 boe/d, of which 70% was liquids.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Storm Impact Analytics for Utilities

In recent years, increasingly volatile and extreme weather events have significantly impacted the...

Reach New Heights: Six Best Practices in Planning and Scheduling

These 6 best practices have created millions of dollars in value for many global companies. Learn...

Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...