The US energy market is presently in an adjustment period that will drive a number of near term changes in the market including decreasing credit availability for E&P companies as a result of upcoming borrowing base reductions, more cautious investing on the public and private equity side, and tighter debt structuring from public and private lenders. The decreased capital availability for E&P companies is already driving adjustments in E&P CAPEX budgets, which in turn has placed downward pressure on oil field service company revenue as contracts are being renegotiated at lower rates.
This adjustment will both create opportunities and difficulties for energy lenders and investors as well as E&P and oil field service companies. In some cases, these adjustments may be limited to a slowdown in a company’s rate of growth. For other companies, US$30 barrel oil will be catastrophic. The question for lenders, investors and energy companies is what kind of opportunity (or difficulty) has been created.
We have experience at all levels of the E&P and oil field services company capital structure and industry related controversies and have been through multiple fluctuations in the energy market. The team is drawn from industry experts that represent energy senior, mezzanine and second lien lenders, debt and equity funds and specialty lending funds focused on distressed and near distressed energy companies. Team members include former special assets and loan review bankers that understand restructuring in federally regulated institutions, bankruptcy and restructuring lawyers experienced in energy in out-of-court and Chapter 11 restructurings and litigators experienced in the intricacies of the energy market.
We have a long history of successful representation in the oil and gas industry and our team of energy professionals offer solutions to the legal challenges our clients currently face. Selected finance related services that our team can provide include:
- Oil, gas and oil field services loan review with a view to workout and other special assets issues
- Credit agreement and collateral documentation review with a view to workout and restructuring
- Distressed debt and energy loan portfolio sales or purchases
- Energy restructuring litigation counse
- Pre-bankruptcy and bankruptcy advice and representation
- Energy asset or equity M&A purchase or sale representation
- Loan officer training with respect to distressed energy assets
- Energy market analysis and policy advice
We have deep experience in energy and oil and gas insolvency matters and have recognized expertise in fashioning creative solutions for distressed oil and gas businesses and their counterparties. We understand the legal documentation unique to the O&G industry, including oil, gas and mineral leases, joint operating agreements, ORRI agreements, production payments, and drilling and other service contracts. We also have a thorough understanding of oil and gas engineering reports and the financing documentation related to O&G lending.
- Counsel to agent bank in US$200 million restructuring and DIP facility in chapter 11 case of Milagro Oil and Gas.
- Lender counsel in Quicksilver Resources chapter 11 case in D. Del.
- Counsel to U.S. Bank, as indenture trustee and chair of the Official Committee of Unsecured Creditors in the chapter 11 case of Energy & Exploration Partners in Fort Worth, Texas.
- Counsel to Coronado Coal as interested bidder for the assets of Patriot Coal in its Chapter 11 case in the E. D. Virginia.
- Counsel to a second lien lender to Magnum Hunter Resources Corporation in its Chapter 11 case in D. Del.
- Co-counsel to the Official Committee of Unsecured Creditors of Enron; lead structured finance and litigation counsel and advised Committee on more than 25 energy related M&A transactions.
- Bank counsel to William O’Connor an oil and gas producer in its Chapter 11 case in Oklahoma.
- Bank counsel in Chapter 11 case of Kendavis Industries, Inc. in the Northern District of Texas.
- Bank counsel to Brio Refinery, Inc a fuel refinery. The case started in Chapter 11, later converted to Chapter 7.
- Counsel to Chapter 11 bankruptcy trustee of MAP 1978 Drilling Partnership in the Northern District of Texas appointed to operate numerous oil and gas production partnership investment entities.
- Chapter 11 restructuring counsel to TECO-Panda, the owner of the two largest combined-cycle natural gas power plants in the world.