Case Study

Financial Advisory

Oil & Natural Gas Exploration & Production (“E&P”) Company

THE FIRE

A once highly successful independent E&P with interests in over 1000 producing wells across several States was suffering financial stress due to severe commodity price shifts.

The company could no longer make principal payments and missed an interest payment.

Bank syndicate had loaned company $100MM for acquisition.

Semi-Annual Reserve Based Lending Re-determination resulted in a $26MM value gap between Reserve Study PV10 and current commodity prices.

THE RESCUE

Reviewed and evaluated borrower’s business plan, underlying financial forecast, assessed borrower’s operations and assessed validity of borrower’s reporting systems while reviewing cash sources.

Developed and suggested improvements to enhance borrower’s cash flow and assess the feasibility of any proposed transactions.

Conducted an in-depth company evaluation that included multiple base case budgets and cash flow forecasts at various commodity prices to provide debt and restructuring options and alternatives.

Became an integral partner and advisor to the bank syndicate and individual members throughout the entire process.

Developed collaborative and open dialogue with company financial professionals that yielded the ability to timely update relevant financial information to the bank syndicate.

THE RESULT

In less than 3 weeks,  presented a detailed and analytic based set of options to the bank syndicate utilizing real world oil & gas operations expertise and financial modeling that served as a basis for forbearance  & debt restructuring negotiations.