Page 14 - NorthAmOil Week 15

NorthAmOil
NEWS IN BRIEF
NorthAmOil
gas pollution. We look forward to working with EQT to ensure full realisation of these benefits,” concluded Mr. Broussard.
US WELL SERVICES, April 08, 2020
Hornbeck Offshore
enters into restructuring
support agreement for
comprehensive balance
sheet restructuring
Hornbeck Offshore Services announced today that the company and certain of its subsidiaries have entered into a restructuring support agreement with secured lenders holding approximately 83% of the company’s aggregate secured indebtedness and unsecured noteholders holding approximately 79% of the company’s aggregate unsecured notes outstanding related to a balance sheet restructuring of the company expected to
be implemented through a voluntary pre- packaged Chapter 11 case in the United States Bankruptcy Court for the Southern District
of Texas in the coming weeks with a targeted completion date prior to the end of the second quarter of 2020.
The restructuring support agreement contemplates a $75mn debtor-in-possession term loan facility provided by existing creditors and permitted use of existing cash on hand and cash generated from operations to support the business during the financial restructuring process, which will enable the company to operate in the ordinary course of business without disruption to its customers, vendors and workforce. The restructuring support agreement provides for payment in full of all vendors and employees.
In addition, pursuant to the reorganisation contemplated by the restructuring support
agreement, the company will achieve long term enterprise benefits including (i) a significant de-levering of its capital structure; (ii) post-emergence access to $100mn of new equity capital through a common
stock rights offering, fully-backstopped
by existing creditors and (iii) the ability to arrange additional post-emergence financings for certain purposes, including strategic initiatives.
HORNBECK OFFSHORE SERVICES, April 14, 2020
MOVES
Tatanka Midstream brings on industry veteran Christine Whelchel as chief operating officer
Tatanka Midstream today announced Christine Whelchel has joined the company
as a founder and its chief operating officer (COO). In addition to oversight responsibility for the integration, efficiency and effectiveness of Tatanka’s future assets, Ms. Whelchel is
a strategic partner in the development and execution of the company’s corporate and competitive strategy. Tatanka is focused on acquiring and building midstream assets
in North America. Tatanka’s goal is to
create value by improving the operations, maintenance and overall efficiency of acquired businesses and by building highly competitive new assets that serve the continually growing and changing needs of the North American energy market. The company is backed by
an initial $500mn capital commitment from EnCap Flatrock Midstream.
TATANKA MIDSTREAM, April 14, 2020
ProPetro adopts short-term stockholder rights plan
ProPetro Holding today announced that
its board of directors has approved the adoption of a short-term (less than one-year) stockholder rights plan to protect stockholder interests and maximise sustained value for all stockholders.
The rights plan is intended to enable the company’s stockholders to realise the long- term value of their investment, ensure that all stockholders receive fair and equal treatment in the event of any proposed takeover of the company, and to guard against tactics to gain control of the company without paying all stockholders an appropriate premium for
that control. The rights plan applies equally
to all current and future stockholders and is not intended to deter offers that are fair and otherwise in the best interest of the company’s stockholders.
In adopting the rights plan, the board
has taken note of the substantial impacts
of the COVID-19 pandemic, including the dramatic drop in worldwide oil consumption and demand and the oil supply shock, which have together had a very negative effect on oil prices and oilfield service activity. The board also has noted the increased volume and volatility in the trading of the company’s common stock. The board believes that
the current trading price of the company’s common stock does not reflect the company’s long-term value and that the rights plan will help promote the fair and equal treatment
of all ProPetro stockholders and ensure that the board remains in the best position to discharge its fiduciary duties to the company and its stockholders.
The rights plan is similar to plans adopted by other publicly held companies. PROPETRO HOLDING, April 14, 2020
P14
w w w . N E W S B A S E . c o m
Week 15 16•April•2020