Energy XXI Emerges from Bankruptcy, Eliminates More Debt Than Expected
Gulf of Mexico-focused energy co. emerges from bankruptcy, eliminating $3.6B in debt
December 30, 2016
By Olivia Pulsinelli | Houston Business Journal Senior Web Editor
Energy XXI Ltd., which is based in Bermuda but has its main office in Houston, has emerged from bankruptcy.
The restructuring process eliminated more than $3.6 billion in debt from its balance sheet, the company said in a Dec. 30 press release. When Energy XXI filed for Chapter 11 in April, the company planned to eliminate more than $2.8 billion in debt.
Energy XXI, Ltd., which focuses its operations on the Gulf of Mexico, emerged from bankruptcy and eliminated $3.6 billion in debt.
The company’s common stock will cease trading on the OTC Market, effective immediately.
As part of the restructuring plan, a new board of directors has been appointed for Energy XXI Gulf Coast Inc., the successor to Energy XXI, according to the release. The new board consists of Chairman Michael Reddin, Michael Bahorich, George Kollitides, Steven Pully, James Swent III, Charles Wampler and John Schiller Jr., president and CEO of Energy XXI.
Energy XXI Gulf Coast will continue to file financial reports and will pursue a listing on the OTCQB Market as soon as it is able to meet the listing criteria.
"We have continued to operate at the highest standards of safety and efficiency and maintained production throughout this process," Schiller said in a statement. "Our employees will continue to be the backbone of our success as we begin Energy XXI’s next chapter.”
Energy XXI was founded in 2005, and its operations grew to average daily volumes of 43,400 barrels of oil equivalent per day for the quarter ended Sept. 30. The company’s assets as of June 30 included nine of the largest fields on the Gulf of Mexico shelf, 635 gross producing wells, 452,083 net developed acres and 60 producing fields.
In 2014, Energy XXI bought EPL Oil & Gas for $2.3 billion, making Energy XXI the largest publicly traded independent operator in the Gulf of Mexico.
PJT Partners LP served as financial adviser, Opportune LLP served as restructuring adviser, and Vinson & Elkins LLP served as legal adviser for Energy XXI during the restructuring process.