
Forward to a Friend
As banks complete their Spring re-determination, the process where banks calibrate their credit levels for producers, the squeeze of 10-30% reductions are being felt as a growing number of producers have delayed their 10k reporting due to pending credit agreement defaults which need to be resolved in order to continue as a going concern. This week the following companies have announced, or indicated, they are pursuing some form of restructuring:
Sandridge Energy, an E&P producer with operating assets in the Mid-Continent, filed for Chapter 11 where the company plans to swap $3.7B of debt for the equity of the restructured company.
Midstream Agreements: Below are the midstream providers with outstanding receivables as disclosed in the Chapter 11 filing.
Breitburn Energy Partners, an E&P Master Limited Partnership with diversified assets across the Permian and Mid-Continent, filed for Chapter 11 relief as they work with creditors to restructure their $2.8B debt. Breitburn joins Linn Energy as the second MLP to file for Chapter 11. Breitburn Energy Partners are encouraged to sell their units prior to a debt restructuring, which could result in CODI tax liability on the 2016 K-1.
Midstream Agreements: Below are the midstream providers with outstanding receivables as disclosed in the Chapter 11 filing.
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
1 . High Risk of Distribution Cut
2 . Distribution At Risk
3 . No Risk of Distribution Cut
4 . No Risk of Distribution Cut; Growth at Risk
5 . No Risk of Distribution Cut; Strong Growth