Page 18 - NorthAmOil Week 21

NorthAmOil
NEWS IN BRIEF
NorthAmOil
MOVES
Unit Corporation voluntarily
files Chapter 11 cases to
restructure balance sheet
Unit Corporation today announced that it has filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, Houston Division to effectuate a pre-negotiated Chapter 11 plan of reorganisation that will reduce the company’s funded debt obligations by more than $650mn and right-size the company’s balance sheet for go-forward operations. The company expects to continue to operate in the ordinary course throughout the Chapter 11 process without material disruption to its vendors, customers, or partners. Importantly, the company’s 50%-owned midstream affiliate, Superior Pipeline Company and its subsidiaries, is not a debtor in the Chapter
11 cases and is unaffected by the company’s Chapter 11 filing. Additionally, the company does not anticipate that payments to vendors and suppliers of its subsidiary Unit Drilling Company will be impacted.
The Chapter 11 petitions were filed in accordance with a restructuring support agreement between the company, the holders of more than 70% of the company’s 6.625% senior subordinated notes due 2021 and all of the lenders under the company’s senior credit agreement. The RSA sets forth the principal terms of the restructuring transaction that will be effectuated by the plan, including
an equitisation of all of the outstanding Subordinated Notes and the replacement
of the existing RBL facility and the DIP financing with a $180mn exit financing facility. Consummation of the Plan will be subject to confirmation by the court and other conditions in the plan, the RSA and related transaction documents.
“Like many companies in the oil and
gas industry, we have felt the impact of the severe downturn in commodity prices, which
has only worsened with the COVID-19 pandemic,” said David T. Merrill, president and chief executive officer. “While facing this challenging environment, we have worked diligently to explore a variety of strategic alternatives to cut costs, improve our liquidity and address near-term debt maturities. We are pleased to receive the support of our lenders and noteholders and are confident that, on emergence from Chapter 11, we will be better positioned to meet our challenges and realize the potential of our Company.”
UNIT CORPORATION, May 22, 2020
Refinery Ventures
Corporation executes letter
of intent to acquire Laconic
Enterprises
Matthew Bassett, CEO & Chairman of Bassett Financial Corporation, the financial advisor for Refinery Ventures Corporation, has announced that the company has executed a letter of intent to acquire all of the issued and outstanding shares of Laconic Enterprises. Refinery Ventures Corporation will change its name to Laconic Enterprises, and the management team of Laconic and its board of directors will assume control of the company.
“This transaction will provide Laconic
with the ability to effectively tap global capital markets to fuel the firm’s growth – we are excited to have the opportunity to supercharge our growth curve and become a truly global enterprise,” says Phil Kenny, CEO of Laconic Enterprises on the transaction.
Laconic Enterprises leverages its unparalleled project delivery expertise,
global technology sourcing capabilities and integrated finance platform to deliver projects such as crude oil distillation units, large-scale energy efficiency upgrades, and energy storage facilities. Laconic delivers the appropriate project on a turn-key basis with zero capital expenditure on the part of the client.
Bassett Financial Corporation has facilitated a one hundred and twentymn-
dollar ($120,000,000) USD LOC following the company’s acquisition of Laconic Enterprises and Refinery Ventures Corporation public offering. This acquisition is the first stage of
a strategic acquisition pipeline that has been formulated in tandem by Bassett Financial Corporation & Laconic Enterprises.
“This transaction facilitates Laconic’s long-term strategic plan by providing
a solid foundation of transparency and regulatory compliance upon which to build out integrated project delivery teams to service clients across the globe,” says Andrew Gilmour, COO of Laconic Enterprises on the transaction.
Details of the merger are to follow with the announcement of the executed definitive agreement.
BASSETT FINANCIAL CORPORATION, May 21, 2020
ExxonMobil outlines
path for resilience, long-
term growth at annual
shareholder meeting
ExxonMobil is managing unprecedented market challenges from the COVID-19 pandemic while preserving long-term shareholder value, chairman and chief executive officer Darren Woods told shareholders today during the company’s annual meeting.
“Despite the current volatility and near- term uncertainty, the long-term fundamentals that drive our business remain strong and unchanged,” Woods said during the meeting, which was held virtually to reduce health risks from the pandemic. “Our objective is to strengthen the structure and earnings power of our business through industry-advantaged projects to provide a solid foundation for generating cash, reliably growing the dividend and maintaining a strong balance sheet.”
In response to market conditions, ExxonMobil announced in April that it would be reducing its 2020 capital spending by 30%, to approximately $23bn, and lowering its
cash operating expenses by 15%. Woods said the company has identified opportunities
to reduce capital expenditures without compromising project advantages or returns.
“We’ve adjusted our business plans in response to market conditions, and are working hard to ensure we maintain the value of our portfolio of industry-leading opportunities,” he said. “While these are uncertain times, some things remain unchanged – including the fundamentals
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Week 21 28•May•2020