Fieldwood Energy has elected to not make an interest payment that was due 30 April to holders of its credit facility, according to two sources familiar with the matter.
The company has been working with Houlihan Lokey to help navigate cash flow pressures. An ad hoc group of lenders has also organized with Rothschild and Davis Polk, as reported.
The E&P company had been ramping up development of its deepwater assets in hopes of boosting production levels and earnings for FY19 through FY21. Now, like its peers, Fieldwood management is re-evaluating its drilling plan and cost structure amid weak oil and gas prices.
Fieldwood didn’t provide liquidity on a recent lender presentation, but sources estimated the figure to be roughly USD 115m as of 31 March, as reported. That compares to USD 312m in liquidity as of 30 June 2019.
The USD 1.14bn first lien exit loan due 2022 is quoted in the 20.4/26 down from 30.6/35.8 on 17 April, according to Markit. Its USD 517.5m Libor+ 725bps second lien exit term loan due 2023 is not actively quoted today, but was in the 5/11 context on 17 April.
The company exited bankruptcy protection in April 2018 centered on a USD 525m rights offering and the purchase of Noble Energy’s deepwater Gulf of Mexico assets.
Fieldwood did not respond to a request for comment.