Templar Energy Goes Bankrupt to Complete Sale
Oil and gasoline driller Templar Electrical power has submitted for Chapter 11 bankruptcy to effectuate a sale of its belongings amid plunging commodity price ranges.
The organization had begun the sale system in February, attracting a dozen indications of interest by mid-April. But it reported Monday that it had made a decision to use the bankruptcy system to consummate a sale.
Given that February, “the volatility in oil and pure gasoline markets has been exacerbated by the unexpected blended affect of the COVID-19 pandemic and the oil price war involving Saudi Arabia and Russia, with oil price ranges descending to the lowest amount considering that 2002,” CEO Brian Simmons reported in a court docket declaration.
“Independent oil and gasoline organizations these types of as [Templar] have been particularly tough-hit, as their revenues mostly are generated from the sale of unrefined oil, pure gasoline, and [pure gasoline liquids],” he observed.
Templar has excellent funded credit card debt obligations of close to $426 million that mature in September. Loan companies have agreed to give it with $25 million in funding to maintain it working in Chapter 11.
As Purely natural Fuel Intelligence reviews, Templar is “joining a rising listing of distressed operators amid the sharpest oil industry downturn in recent memory.”
“It seems no oil-generating area of the United States is secure from the carnage, as evidenced by the Chapter 11 filings of Bakken Shale heavyweight Whiting Petroleum and Wyoming-focused Ultra Petroleum,” NGI added.
Templar, which was established in 2012 by former CEO David Le Norman, focuses on the progress and acquisition of crude oil and pure gasoline reserves in the Bigger Anadarko Basin of northeastern and western Oklahoma and the Texas Panhandle.
As of May 2020, it was generating about eighteen,000 barrels of oil equal per day (Mboe/d), down from 21,000 Mboe/d in December.
An out-of-court docket restructuring in 2016 eradicated $one.forty five billion in second-lien credit card debt and injected $365 million of fairness capital into the organization. “Based on the strong engagement by bidders during the prepetition system, the debtors are hopeful for an active auction system,” Simmons reported.
