Bankruptcy / Restructure Update | Capital Markets

Oasis Petroleum's Bankruptcy Plan Approved by Court

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   |    Wednesday,November 11,2020

Oasis Petroleum Inc. announced that the US bankruptcy court has confirmed its "pre-packaged" restructuring plan.

The plan will eliminate $1.8 billion worth of the company's debt.

The Company expects to successfully complete its financial restructuring and emerge from Chapter 11 within 30 days.

Highlights include:

• Of the ballots received, the Plan received 100% acceptance from the revolving lender group, 95% acceptance from the bondholder group, full acceptance from Mirada, and 77% acceptance from the common equity group.
• Reducing annual interest expense by $112.5 million through the elimination of $1.8 billion of senior unsecured notes.
• Leverage on the E&P business is expected to be reduced to approximately 1.0x upon completion of the Plan.
• Oasis has aggressively hedged during the Company's restructuring process and currently has 29 mbopd swapped at $42.09 in 2021, 19 mbopd swapped at $42.74 in 2022, and 14 mbopd swapped at $43.68 in 2023.

Chairman and Chief Executive Officer, Thomas B. Nusz commented, "Today's ruling is an important milestone for Oasis as we continue to advance our restructuring process on an expedited basis. On behalf of the entire Oasis team, I thank all our stakeholders, including lenders, noteholders, vendors, royalty interest owners, working interest owners and surface owners, as well as our valued customers and employees, for their continued support and business.

"As always, Oasis remains committed to the highest standards of environmental stewardship, safety and operational excellence. Oasis is continuing operations and production as usual, while also prioritizing the safety of our employees and communities. We look forward to completing our financial restructuring and emerging as an even stronger company."