Midstream: Restructuring: Southcross Chapter 11 Filing

The Term Loan B lenders for Southcross Holdings LP, a midstream company with facilities and pipelines in south Texas, Mississippi, and Alabama, engaged Opportune to assist in operational analysis and advise on the ensuing restructuring of the company. Opportune served as the financial advisor and analyzed the company’s business plan. This analysis involved a comprehensive asset review, evaluation of individual producers, detailed assessment of future capital expenditure needs, and examination of near-term liquidity.

Opportune leveraged its multiple practice areas to conduct a detailed review of the individual drivers of the business plan. This included work by Opportune’s Reserve Engineering practice, Ralph E. Davis Associates, to analyze volume projections for individual producers, utilizing recent drilling activity, inventory of drilled uncompleted wells, individual type curves, and breakeven pricing.  Opportune also mobilized our in-house Chemical Engineering practice to conduct a detailed operational review of the company’s assets.  The operational review encompassed two sour gas treating facilities, two gathering systems, four gas processing plants, and two fractionation plants.  Our analysis formed the basis for a revised business plan and liquidity forecast models which guided the lenders through the decision making process.  Opportune’s work was instrumental in the resulting pre-packaged chapter 11 plan that was ultimately confirmed 15 days after filing.

The Opportune team has the rare combination of diverse subject matter expertise, valuable client service experience, and proven success.  In our work with stakeholders, we have successfully argued for value, supported litigation, provided formal company- and industry-specific reports, developed competing reorganization plans and supported the entirety of our efforts with testimony and expert work product. For more information, click here.