Eagle Ford producer, Penn Virginia Corporation has filed for chapter 11 protection.
Related: More Oil & Gas Bankruptcies Likely
On May 12th, Penn Virginia Corporation announced that it had filed voluntary petitions for relief under chapter 11 in order to reduce the Company's long-term debt by more than $1 billion. As part of the filing, the company asked the Court to allow them to continue its ongoing employee compensation and benefit programs.
“Like many other exploration and production companies, Penn Virginia has been significantly affected by the recent and continued dramatic decline in oil and natural gas prices. We believe using the chapter 11 process is the most efficient way to achieve our financial objectives and deleverage the Company’s balance sheet,”
Eagle Ford Operations
Penn Virginia's primary focus is on its operations in the Eagle Ford Shale holding approximately 100,000 net acres in Gonzales and Lavaca Counties. The company did not release a 2015 Q4 statement, but their website states that they planned to utilize one operated drilling rig in the Eagle Ford Shale for the remainder of 2016.
Join the Discussion: How Will Oil Company Bankruptcy Affect Me As A Royalty Owner
In January, Penn Virginia suspended trading on the NYSE and began delisting procedures.
Oil and gas bankruptcies continue to rise as the fallout of low crude prices takes its toll. Halcón Resources Corp. announced today that they have reached an agreement with stakeholders to restructure its balance sheet and eliminating approximately $1.8 billion of debt. Other companies to file bankruptcy this year include Linn Energy, Goodrich Petroleum and Sabine Oil & Gas.