Oasis Petroleum completes restructuring, emerges from bankruptcy

By Sarah Lizee

Olympia, Wash., Nov. 19 – Oasis Petroleum Inc. has completed its financial restructuring and emerged from Chapter 11 bankruptcy, according to a press release issued late Thursday.

The company reduced its pre-petition debt by $1.8 billion and resolved the Mirada litigation under its restructuring support agreement and pre-packaged restructuring plan, which was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on Nov. 10.

Oasis Petroleum’s new common stock was expected to start trading on Nasdaq under the ticker symbol “OAS” at market open on Friday.

New capital structure

The company’s new capital structure includes a new $575 million reserve-based revolving credit facility maturing in May 2024, of which $340 million was drawn at emergence. The first borrowing base redetermination is scheduled for April 1. The loan is priced at Libor plus 300 basis points to 400 bps, with a 100 bps floor.

Oasis’ unsecured claims, including holders of Oasis' senior unsecured notes, received their proportionate distribution of 100% of Oasis' newly issued common stock, subject to dilution.

The equity allocated to unsecured noteholders includes about 20 million shares of common stock outstanding. At emergence, 60 million shares were authorized. About 2.4 million shares are reserved for the management incentive plan.

The roughly 1.6 million of warrants to current Oasis shareholders are exercisable for one share of common stock at an initial exercise price of $94.57, expiring on Nov. 19, 2024.

New board

Oasis Petroleum has appointed a new board of directors effective Nov. 19. Douglas E. Brooks has been named chairman of the board.

The new board consists of seven members, six of whom are independent, including Brooks, Thomas B. Nusz as chief executive officer, Samantha Holroyd, John Jacobi, N. John Lancaster Jr., Robert McNally and Cynthia L. Walker.

Tudor, Pickering, Holt & Co. and Perella Weinberg Partners are acting as financial advisers for the company, Kirkland & Ellis LLP is acting as legal adviser and AlixPartners, LLP is acting as restructuring adviser.

Evercore is acting as financial adviser and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Porter Hedges LLP are acting as legal advisers to the ad hoc committee of senior noteholders.

Oasis, a Houston-based oil and natural gas company, filed bankruptcy on Sept. 30. The Chapter 11 case number is 20-34771.

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