US shale firm Gulfport Energy exits bankruptcy
US shale producer Gulfport Energy said May 18 it emerged from Chapter 11 bankruptcy protection with a new board and an improved balance sheet.
After a tumultuous year of pandemic strains, and aiming to eliminate roughly $1.25bn in debt, the company started a restructuring process in November.
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“Gulfport has exited bankruptcy with a new board of directors; a strengthened balance sheet, with $853mn of total debt representing more than $1.2bn of deleveraging through the Chapter 11 process; and approximately $135mn of liquidity,” its May 18 statement read.
As part of the process, Gulfport said that president and CEO David Wood retired, effective immediately, and chief financial officer Quentin Hicks resigned. Timothy Cutt was appointed interim CEO and Bill Buese as CFO. Five new directors, including Cutt, were appointed to the board as well.
“Gulfport is emerging from its successful restructuring having materially improved its balance sheet and midstream cost structure, which leaves Gulfport well-positioned for future success,” Cutt said. “Today, we begin a new chapter at Gulfport with a strategy focused on continuing to reduce costs and generating sustainable free cash flow in an effort to drive shareholder value.”
Based in Oklahoma, Gulfport before entering bankruptcy was among the major gas producers in the Utica shale basin underneath the broader Appalachia shale. Describing its ratings outlook as positive, Fitch Ratings reported May 18 that Gulfport has a drilling inventory in the Utica with 445 operated locations. In the SCOOP basin in Oklahoma, the company holds 460 operated locations.
Fitch said it expects no change in the company’s production levels, but noted the company would favour natural gas over oil.