Vanguard Natural Resources LLC (NASDAQ: VNR) filed for bankruptcy protection, adding to a long list of energy firms that have succumbed to weak oil prices.
The Houston-based company said Feb. 2 it signed an agreement with certain bondholders that includes a $19.25 million equity investment, with some debtors backing a $255.75 million rights offering.
Vanguard also said it had obtained a $50 million debtor-in-possession financing facility, underwritten by Citibank NA, JPMorgan Securities LLC and Wells Fargo Bank NA.
The financing, which is subject to court approval, combined with Vanguard's cash from operations, is expected to give the company sufficient liquidity during the Chapter 11 process.
Paul Hastings LLP is serving as Vanguard's legal counsel and Evercore Partners is the company's financial adviser. Opportune LLP is the restructuring adviser.
RELATED:
Report: Vanguard Natural Resources Considers Debt Reorganization
Vanishing Point? Vanguard Closes Stack Sale; Braces For Hit From Lenders
Recommended Reading
TXO Announces 3 Tcfe NatGas Potential in San Juan Basin
2025-01-16 - TXO Partners plans to exploit a 3,520-acre play as Phase 1 development in the Mancos Shale.
Targa Pipeline Helps Spark US NGL Production High in 2024
2025-01-23 - Analysts said Targa Resources’ Daytona line released a Permian Basin bottleneck as NGLs continued to grow.
Enverus: Haynesville Has 12.5 Years of Sub-$3 NatGas Inventory
2024-11-19 - Enverus forecasts that the time left to capitalize on the Haynesville's inventory will shorten by another two years when taking into account a boom in LNG demand.
Pickering on Permian: Marginal Barrels, Stripper Wells, More
2024-12-02 - As the Permian Basin matures and global oil demand grows, Dan Pickering, chief investment officer for Pickering Energy Partners, offers his thoughts on the basin’s future, costs, demand and the price of oil.
Dallas Fed: Trump Can Cut Red Tape, but Raising Prices Trickier
2025-01-02 - U.S. oil and gas executives expect fewer regulatory headaches under Trump but some see oil prices sliding, according to the fourth-quarter Dallas Fed Energy Survey.