TULSA, Okla., March 1, 2017 /PRNewswire/ — Samson Resources Corporation (“SRC”) announced today that the Company and its subsidiaries have emerged from Chapter 11 bankruptcy protection, after satisfying all of the conditions required under its Plan of Reorganization (the “Plan”), which was confirmed by the U.S. Bankruptcy Court for the District of Delaware on February 13, 2017. Under the Plan, substantially all of SRC’s remaining assets, including its subsidiaries, were transferred to Samson Resources II, LLC (“Samson II” or the “Company”). The majority of the equity in Samson II was distributed to SRC’s second lien lenders, both on account of their claims in the bankruptcy and in connection with a $60 million rights offering. In addition, Joseph A. Mills has been officially appointed by the new Board of Directors as Samson II’s President and Chief Executive Officer, succeeding Andrew Kidd, who accepted the position in February 2016, having previously served as General Counsel.
Samson II features a substantially improved financial position, having discharged approximately $4 billion of debt and nearly $300 million of annual interest expense under the Plan. Samson II’s post-emergence debt financing consists of a first lien revolving credit facility with an initial borrowing base of $280 million, of which $245 million was outstanding on the effective date. With the completion of its restructuring, the Company has greater than $60 million in total liquidity (including both cash on hand and available under the credit facility), a business plan that projects positive free cash flow, and substantial commodity hedges to protect that liquidity position.
Samson II is a privately held onshore exploration and production company headquartered in Tulsa, Oklahoma. The Company has significant acreage positions in East Texas, the Powder River Basin and the Green River Basin that, taken together, comprise approximately 450,000 net acres and the Company produces approximately 140 MMCFE/day of oil, natural gas and NGL’s. The Company, in consultation with its new Board of Directors and CEO, plans to conduct a strategic review of its asset portfolio and development plan in order to maximize value for its stakeholders.
“It is a great pleasure and honor to work with the new ownership group and the employees to develop and implement our new strategic direction and further strengthen the company’s capital structure and operations,” stated Joseph A. Mills, President and Chief Executive Officer of Samson II. “I look forward to helping build shareholder value and an organization that will be a credit to the management team and our workforce, who have been highly supportive during our restructuring process. I would also like to thank Andrew Kidd and the previous management team for their dedication and perseverance in guiding the company during the bankruptcy process.”
Mr. Kidd stated, “Its emergence from Chapter 11 will allow the Company to move past a challenging period for SRC and others in this industry and once again devote full attention to running its business as our industry continues its recovery. We thank all of our employees, customers, partners, restructuring advisors and financial stakeholders for supporting us throughout this process, and I wish Joseph and all of my SRC colleagues the very best as they take their next steps.”
New Board of Directors
In accordance with the Plan, Samson II has appointed a new Board of Directors consisting of Matthew W. Bonanno, Partner at York Capital Management; Eugene I. Davis, Chairman and Chief Executive Officer at Pirinate Consulting Group; Phillip A. Gayle, Jr., Managing Partner at Millennial Energy Partners; Joseph A. Mills, Chief Executive Officer of Samson Resources II, LLC and L. Spencer Wells, Partner at Drivetrain Advisors. Joseph A. Mills will also serve as Samson II’s President and Chief Executive Officer and Eugene I. Davis will also serve as Chairman of the Board.
Additional information about SRC and its Chapter 11 case is available at www.GardenCityGroup.com/cases/SamsonRestructuring. General inquiries may be directed to the Company’s dedicated restructuring hotline at (888) 547-8096 or emailed to [email protected]. The Company also has established a dedicated vendor hotline at (918) 591-1306 or [email protected].