LAFAYETTE, La., Feb. 11, 2019 (GLOBE NEWSWIRE) — PetroQuest Energy, Inc. today announced that the conditions to effectiveness of the Company’s Chapter 11 Plan of Reorganization, which was confirmed by the United States Bankruptcy Court for the Southern District of Texas on January 31, 2019, have been satisfied and the Company has emerged from bankruptcy. Through this process, the Company has enhanced its balance sheet position by eliminating approximately $295 million in debt and preferred equity obligations from its balance sheet.
The Company’s post-restructuring balance sheet includes $130 million of debt outstanding, consisting of $80 million in aggregate principal amount of its 10% Senior Secured PIK Notes due 2024 and a $50 million first lien term loan agreement. The Company estimates that its current cash balance is approximately $23 million.
Effective as of emergence, the Company’s Board of Directors is comprised of management and directors appointed by the Company’s largest shareholders. The directors are Neal P. Goldman, Chairman of the Board, Charles T. Goodson, John “Brad” Juneau, Harry Quarls and David I. Rainey.
Following completion of the restructuring, the Company will have approximately 9.2 million shares of its Class A common stock outstanding. The Company expects that its shares of Class A common stock will initially be quoted on the OTC Pink Market.
More detailed information on the Company’s restructuring can be found in its Current Report on Form 8-K filed with the Securities and Exchange Commission today.
2018 Estimated Proved Reserves and Production
The Company ended 2018 with approximately 130.3 Bcfe of estimated proved oil and gas reserves, having a pre-tax discounted value (“PV-10,” which is a non-GAAP measure for which the standardized measure is unavailable (see “Non-GAAP Financial Measure” below)), of, including hedges of approximately $124.0 million, based on SEC pricing, $3.10/Mcf for natural gas and $65.56/Bbl for oil. The Company’s estimated proved reserves at December 31, 2018 were comprised of 82% natural gas, 5% oil and 13% natural gas liquids. In addition, approximately 47% of the reserves were proved developed.
The Company estimates that its 2018 production was approximately 21.4 Bcfe (75% natural gas, 9% oil and 16% natural gas liquids), or 58.7 MMcfe per day, including fourth quarter 2018 production of 4.6 Bcfe (75% natural gas, 8% oil and 17% natural gas liquids), or 50.4 MMcfe per day.
“We are excited to announce the successful completion of our financial restructuring and to embark on our new beginning. Our Company emergences from bankruptcy with a stronger recapitalized balance sheet and significantly reduced debt load, which we believe will allow us to fully realize our potential in developing our assets,” said Charles T. Goodson, Chief Executive Officer and President. “I would like to extend my appreciation to our former board of directors, and our employees and advisors who worked diligently during this process. In addition, we are looking forward to collaborating with our new board of directors, who bring experience and expertise to PetroQuest, in developing strategies to position the Company for long-term success and drive value for all our stakeholders.”