OFS - McDermott finishes structures & pipelines project off Malaysia - July 2020McDermott International completed the Pan Malaysia transportation and installation projects located off Miri, Malaysia, for Sarawak Shell Berhad and SapuraOMV. Awarded in November 2018, the projects included the transport and installation of jackets, topsides and pipelines for the Gorek, Larak and Bakong gas fields. McDermott’s vessel, the Derrick Barge 30, was used to install the structures and pipelines, including the longest corrosion-resistant alloy pipeline in Malaysia....
Jul 01, 2020
OFS - Vista Proppants files for Chapter 11 reorganization - July 2020Vista Proppants and Logistics filed for Chapter 11 bankruptcy on June 9, overwhelmed by collapsing activity in the already oversupplied in-basin frac sand market because of the downturn. The Fort Worth, Texas-based company will continue limited operations after lining up $11 million in financing from senior lenders and expects to leave reorganization in 120 days. The company has roughly $400 million in assets and about $500 million in secured debt, including a $370 million secured term...
Jul 01, 2020
OFS - Calfrac delays interest payment as it tackles balance sheet - July 2020Calfrac Well Services deferred a June 15 interest payment on its C$613 million ($448 million) in 8.5% senior unsecured notes due 2028 and is negotiating with its lenders to improve its balance sheet. The completions company also said it is preparing for increased US activity in H2. The notes give it a 30-day grace period before a default. Calfrac said it has drawn $170 million against its $375 million revolving term loan facility and C$170 million in second lien-notes due 2026,...
Jul 01, 2020
MCS - Tapstone taps Osage & Meramec in Dewey-focused program - July 1, 2020Tapstone Energy conducted a Mississippian-focused development program last year, primarily in Dewey County, Oklahoma. Of 23 completions by the company during 2019, 21 were in that county, while the other two were in Woodward County. Enverus’ DI Landing Zone analysis suggests targets in the Meramec and Osage. Effective lateral lengths for the Dewey horizontals averaged 8,298 ft and frac loads were 1,022 lb per perforated lateral ft. During 24-hour tests, the wells averaged 748 boe/d (52% oil),...
Jul 01, 2020
CM - Equitrans absorbs EQM Midstream, which issues $1.6B in debt - June 2020EQM Midstream Partners LP, now a subsidiary of Equitrans Midstream Corp., sold two new series of notes with a combined aggregate principal amount of $1.6 billion: $900 million of 6.5% notes due 2027 and $700 million of 6% notes due 2025. Both series of notes are senior, subordinated and unsecured. The principal amount of notes sold is double the initially contemplated offering amount of $800 million. Just one day earlier, Equitrans and EQM announced the completion of Equitrans’ buyout...
Jun 26, 2020
CM - High-yield Comstock add-on brings debt load to $2.5B
- June 2020Comstock Resources Inc. offered $500 million aggregate principal amount of 9.75% senior unsecured notes due 2026. The June 16 offering was upsized from an initially contemplated $400 million principal amount. The company said the new 2026 notes will have substantially identical terms to the $850 million of 9.75% senior notes due 2026 that it issued in August 2018, but will not trade interchangeably with the original notes because they were issued under a separate indenture. Owing to the...
Jun 26, 2020
CM - Startup Sixth Creek Energy will seek $250MM-plus investments - June 2020Denver-based Sixth Creek Energy, which just formed this quarter, said it will pursue the addition of institutional investors to its capital base if the size of an opportunity dictates. The company disclosed in an investor presentation that initial capital commitments from management, friends and family will total around $50 million. The company is working with Houston-based investment and merchant bank Rivington Holdings. Sixth Creek said its strategy was to acquire low-risk PDP...
Jun 26, 2020
CM - Mid-Con recapitalizes & signs new operatorship agreement - June 2020Mid-Con Energy Partners LP announced a series of transactions that will recapitalize and reorganize the structure of the struggling producer, and change the way it will—or won’t—operate moving forward. To kick it all off, MidCon will no longer operate its properties through its Mid-Con Energy Operating subsidiary. Instead, it has contracted that task to Contango Resources Inc., subsidiary of Contango Oil & Gas Co., which will charge a flat fee and receive warrants to buy Mid-Con’s equity....
Jun 26, 2020
CM - Bankrupt Templar selling Midcon assets through Section 363 - June 2020Midcontinent producer Templar Energy, which filed for bankruptcy protection June 1, launched a Section 363 sales process for its assets. Though the company has had its portfolio on the market since February, there wasn’t enough interest to overcome the collapse of oil prices the following month, so the 363 option become more attractive. Templar’s assets consist of 273,400 net acres (75% HBP) in the greater Anadarko Basin of northeastern and western Oklahoma and the Texas Panhandle. Its...
Jun 26, 2020
CM - Black Stone using sales proceeds to bring debt under $200MM - June 2020Black Stone Minerals said it will pay down debt with the proceeds from the sales of Permian Basin mineral and royalty properties for $155 million. The company expects to reduce debt to below $200 million after completing the pair of sales, in turn bringing its debtto-capital ratio to 15% from 26%. Black Stone had $388 million outstanding on its credit facility as of the end of Q1. The company, the largest pure-play oil and gas mineral and royalty owner in the US, is looking to shift its...
Jun 26, 2020
CM - DCP closes $500MM debt sale to pay down revolver borrowings - June 2020DCP Midstream LP announced the closing of the sale of $500 million aggregate principal amount of 5.625% senior notes due 2027 at 100 on June 24. The offering was upsized from an earlier contemplated $400 million principal amount. Net proceeds of about $494 million will be used for general partnership purposes, which include the repayment of revolver debt and possibly the funding of capital expenditures. The new notes bring DCP’s total long-term debt outstanding to over $5.93 billion,...
Jun 26, 2020
CM - Eversource raising almost $600MM to fund $1.1B gas asset buy - June 2020New England’s largest energy company, Eversource Energy, announced the pricing of 6 million common shares at $86.26 each, plus a 900,000-share underwriters’ overallotment option for 30 days. The offering sold out on June 11, with Eversource realizing $517.56 million in gross proceeds. The registered overallotment value is $77.63 million. Goldman Sachs, Barclays and Citi are the underwriters. The company, which has a large natural gas distribution business, will use net proceeds to...
Jun 26, 2020
CM - Ares’ IGS Resi Solar III fund raises $150MM for new projects - June 2020Ares Management Corp., through its Infrastructure and Power strategy group and IGS Ventures unit, raised $150 million in capital for new fund IGS Resi Solar III LLC. The capital commitments for Solar III comprises cash equity from its sponsors, tax equity, and debt that will be deployed to fund a portfolio of nearly 4,000 residential solar power installations with 25-year power purchase agreements or leases across multiple states. The Solar funds, of which this is the third, have raised...
Jun 26, 2020
CM - SPAC Tortoise shedding midstream shell for powertrain maker - June 2020Special-purpose acquisition company Tortoise Acquisition Corp., which intended to buy a midstream or water company when it went public in March 2019, has gone in a different direction. The blank-check company announced an agreement to purchase Hyliion Inc., a Pittsburgh-based maker of Class 8 electric powertrains for long-haul trucks. The deal places the combined companies’ value at over $1.5 billion, assuming no Tortoise public shareholders exercise their redemption rights. Upon completion of...
Jun 26, 2020
CM - Amplify’s credit terms stricter in ‘challenging’ redetermination - June 2020Amplify Energy Corp. said its operating subsidiary entered into a borrowing base redetermination that reduced availability to $285 million from $450 million, effective June 1. There will be monthly reductions of $5 million thereafter until the borrowing base is reduced to $260 million. Lenders increased the amount of first-priority liens on all assets to at least 90% from 85%, and decreased permitted cash and equivalents to $25 million from $30 million. The limit for transaction-related...
Jun 25, 2020