Samson Resources emerges from bankruptcy, sheds $4 billion in debt

Samson Resources Corp., Tulsa, and its subsidiaries have emerged from Chapter 11 bankruptcy protection, discharging $4 billion of debt and nearly $300 million of annual interest expense.

Under its plan of reorganization, Samson Resources Corp.’s remaining assets, including its subsidiaries, were transferred to Samson Resources II LLC. The majority of the equity in Samson II was distributed to Samson Resources Corp.’s second lien lenders, both on account of their claims in the bankruptcy and in connection with a $60-million rights offering.

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 says it has more 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 has 450,000 net acres in East Texas, the Powder River basin, and the Green River basin. The company produces 140 MMcfed of oil, natural gas, and NGLs.

Joseph A. Mills was chosen by its second-lien creditor group as Samson Resources II’s president and chief executive officer (OGJ Online, Feb. 20, 2017). Samson sought bankruptcy protection in 2015 (OGJ Online, Sept. 18, 2015).