Fieldwood Energy caught in a perfect storm as BOEM liabilities dwarf liquidity

22 September 2016

Just five months ago Fieldwood Energy investors agreed on a comprehensive recapitalization deal that helped preserve the company’s dwindling liquidity position. Fieldwood’s second lien holders provided new money and took part in a debt exchange that was designed to give the oil and gas producer a chance to weather the unprecedented downturn in oil prices. But that effort could be all for naught if new regulations implemented by the Bureau of Ocean Energy Management earlier this month force the company to cover USD 1bn in plugging and abandonment costs related to its Gulf of Mexico wells, according to a Debtwire Investigations report.

 

With depleted coffers and an earnings trajectory that points to continued cash burn, Fieldwood has few resources to satisfy the USD 1bn it owes, USD 220m of which was listed as current at 30 June, according to two of the sources who reviewed the company’s financials.

 

CLICK HERE to read the special report.

 

CLICK HERE to view the first part of this Debtwire InvestigationsBOEM series.

 

CLICK HERE to listen to the podcast with Randall Luthi, President of the National Ocean Industries Association.

 

CLICK HERE for the replay of the Debtwire Investigations webinar discussing the new plugging and abandonment laws on offshore drillers.