Oasis Petroleum Inc. filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the US Bankruptcy Court for the Southern District of Texas to implement a pre-packaged restructuring plan.
Through the restructuring, Oasis Petroleum intends to reduce its total indebtedness by $1.8 billion, representing 100% of its senior unsecured notes and senior unsecured convertible notes. Upon emergence, the company expects to have $340 million of borrowings under its credit facility. It is expected that the restructuring process will be completed in November 2020, subject to court approval.
Oasis Midstream Partners, an independent legal entity operated as a master limited partnership, and all subsidiaries in which it owns an equity interest are not included in Oasis Petroleum's Chapter 11 proceedings.
Throughout the restructuring process, Oasis Petroleum's upstream operations and production and Oasis Midstream Partners' operations are expected to continue as normal. Customary motions to support ongoing operations without interruption, including the payment of employee wages and benefits and paying royalty interest owners, working interest owners and surface owners, are intended to be filed. Vendors and suppliers are expected to be paid in full, and Oasis intends to seek court approval to pay vendors for all goods and services provided on or after the Chapter 11 filing date in the ordinary course of business. Under terms of the plan, which is subject to court approval, general unsecured prepetition claims will also be paid in full upon the company's emergence from Chapter 11.
In connection with the RSA, and subject to court approval, Oasis Petroleum has received a commitment for $450 million in debtor-in-possession (DIP) financing from its existing lenders. Additionally, the company has entered into a commitment letter for an exit revolving credit facility with borrowing capacity up to $575 million.
The following entities are included in the Oasis Petroleum Chapter 11 filing:
- Oasis Petroleum Inc.
- Oasis Petroleum LLC
- Oasis Petroleum North America LLC
- Oasis Well Services LLC
- Oasis Petroleum Marketing LLC
- Oasis Petroleum Permian LLC
- OMS Holdings LLC
- Oasis Midstream Services LLC and
- OMP GP LLC
The following entities are not included in the Chapter 11 filing:
- Oasis Midstream Partners LP and subsidiaries, OMP Operating LLC, Bobcat DevCo LLC, Beartooth DevCo LLC, Bighorn DevCo LLC and Panther DevCo LLC