Penn Virginia Emerges from Bakruptcy
Penn Virginia Corporation, who focuses on the Eagle Ford Shale Play, has emerged from bankruptcy
Related: Eagle Ford Companies Struggle as Bankruptcies Soar
Penn Virginia Corporation announced this week that it has satisfied the conditions of the bankruptcy court and reduced total long-term debt by approximately $1.1 billion.
“Today begins a new chapter in the history of Penn Virginia. We have emerged from bankruptcy with a significantly de-leveraged balance sheet and committed financial support from our senior lenders and other stakeholders. With improved liquidity and a stronger capital structure, we are well-positioned to realize the full value of our excellent asset portfolio.”
The company plans to maintain their core position in the Eagle Ford and for the remainder of 2016, expects to utilize one operated drilling rig in the region. As of November of last year, Penn Virginia reported its position as approximately 100,000 net acres in the oil window of the Eagle Ford shale play in Gonzales and Lavaca Counties, Texas. According to the company website, Eagle Ford production was 14,188 BOEPD during the three months ended March 31, 2016, with oil comprising 10,504 BOPD, or 74 percent, and NGLs and natural gas comprising approximately 14 percent and 12 percent.
Texas has been hit specifically hard with industry bankruptcies. According to the law firm of Haynes and Boone, more that half (25) of the 2016 filing being initiated in Texas courts. The combined total Texas bankruptcy filings for 2015-16 is 43, representing approximately $29 billion in cumulative debt.