As a result of the restructuring process, Maverick has debt of approximately $105 million, which is substantially lower than Breitburn’s $2.96 billion debt balance prior to initiating the restructuring process. Maverick has approximately $295 million of additional borrowing capacity under a new bank credit facility. Maverick’s balance sheet provides it with significant financial flexibility and positions the organization for long-term success.
Clayton Taylor, Managing Director of EIG, said: “We are pleased to close this chapter and focus on generating value for the Maverick platform. Maverick will emerge with low leverage, a simple balance sheet, and sufficient liquidity to remain adaptive to the ever-changing market conditions. Following a judicious review of the asset portfolio and cost structure, we believe Maverick is well-positioned to capitalize on cost reduction initiatives, to deploy capital to high growth prospects and to potentially build the platform through strategic acquisitions.”
Halbert S. Washburn, Maverick’s Chief Executive Officer, said: “Today marks a new beginning for our company and all of our stakeholders and the end of a difficult period managing through the steep and sustained decline in oil and natural gas prices. Throughout the extended restructuring process, we remained focused on our key goals of managing production and reducing costs to preserve the value of our diverse and long-lived portfolio, substantially reducing debt and dramatically improving our liquidity position, and achieving a consensual plan of reorganization among our key creditor groups. I would like to thank our outstanding employees for their unwavering commitment throughout the restructuring process.”
Following are highlights of Maverick’s current portfolio of assets:
- Operated approximately 88% of stable long-lived production in 2017, averaging 39,742 Boe/d
- Estimated proved reserves of 152.2 MMBOE, approximately 97% of which are proved developed reserves with a proved reserve life index averaging more than 10 years
- Approximately 1 million gross acres (600,000 net)
- Approximately 11,500 gross wells (7,600 net)
Maverick’s Board of Directors is comprised of the following individuals:
• Halbert S. Washburn
|Maverick Natural Resources, Chief Executive Officer|
• William C. Sonneborn
|EIG Global Energy Partners, President|
• Terence Jupp
|EIG Global Energy Partners, Managing Director|
|Harbour Energy, Ltd., Chief Operating Officer|
• Clayton Taylor
|EIG Global Energy Partners, Managing Director|
• Jeff Serota
|Corbel Capital Partners, Vice Chairman|
|Willow Tree Credit Partners, Senior Advisor|
Maverick Natural Resources, LLC is a portfolio company majority-owned and controlled by funds and accounts managed by EIG. Maverick is focused on the development and production of long-lived oil and gas reserves throughout the United States, including the following regions: Midwest, Ark-La-Tex, Rockies, California, Permian Basin, Southeast and the Mid-Continent.
EIG Global Energy Partners specializes in private investments in energy and energy-related infrastructure on a global basis and has $17.7 billion under management as of December 31, 2017. Since 1982, EIG has been one of the leading providers of institutional capital to the global energy industry, providing financing solutions across the balance sheet for companies and projects in the oil and gas, midstream, infrastructure, power and renewables sectors globally. EIG has invested over $25 billion in more than 320 portfolio investments in 36 countries. EIG is headquartered in Washington, D.C., with offices in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul. For more information, please visit www.eigpartners.com.
Certain information contained herein constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “outlook, “may,” “will,” “should,” “expect,” “anticipate,” “target,” project,” “potential,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon. Because of various risks and uncertainties, actual events or results or actual performance may differ materially from the events, results or performance reflected or contemplated in such forward-looking statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company’s filings. EIG assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events or circumstances. As a result, investors should not rely on such forward-looking statements.
This press release is not an offer of securities for sale in the United States. Any securities referenced herein may not be offered or sold in the United States absent registration or an exemption from registration. No public offering of the securities is intended to be made into the United States, but any public offering of the securities in the United States would be made via a prospectus that may be obtained from the issuer and will contain detailed information about the Company and management, as well as financial statements.
Maverick Natural Resources, LLC
Vice President, Investor Relations & Government Affairs