Fieldwood EBITDA dips in 2Q19, deepwater project developments could energize growth

Fieldwood Energy booked an EBITDA decline for 2Q19, according to three sources familiar with the matter.

Adjusted EBITDA for the quarter came in at USD 120.8m, down 8.8% from USD 132.4m in 1Q19 and roughly USD 130m in 2Q18, the sources said. Quarterly revenue came in at roughly USD 320m, down year-over-year but up sequentially, two of the sources said.

As of 30 June, the company had a cash balance of USD 212m, two sources said. Including about USD 100m of revolver availability, liquidity totaled USD 312m, one of the sources added.

Operationally, the company has some heavy lifting on the horizon, including the upcoming development of deepwater reserves, the sources said. Specifically, Fieldwood has six high-rate wells coming online between 4Q19 and 1Q20, according to two of the sources.

Management projects the company will book adjusted EBITDA of USD 700m for 2019, with bottom line performance improving to USD 900m–USD 1.25bn in 2020, and to USD 1bn–USD 1.5bn by 2021, two sources continued.

If the company achieves its production targets for the expansion, it could look to refi its structure in the second half of 2020, one of the sources said. Leverage at the end of 2Q19 sits around 2.6x through USD 1.7bn in total debt and adjusted LTM EBITDA calculations in the USD 619m-USD 693m range, according to the three sources.

Fieldwood’s USD 1.14bn Libor+ 525bps first lien exit term loan due 2022 dipped slightly to 86.429/88.857 on 4 September from 87.313/89.313. The loan ticked up after the earnings call on 6 September to 86.792/88.417. The loan was last quoted today at 86.571/88.179, according to Markit.

The company’s USD 517.5m L+ 725bps second lien exit term loan due 2023 also dipped to the 74.5/77.9 context on 4 September after the report from 74.938/78.813 on 3 September. The loan fell further to the 73.571/77.429 context this week before rebounding today to 74.75/78.25, according to Markit.

Fieldwood declined to comment.

2019 Debtwire

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