EP Energy Takes Action to Reduce its Debt Significantly and Strengthen its Balance Sheet
On October 3, 2019, EP Energy announced that it has voluntarily filed petitions for chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”).
EP Energy will continue to operate as normal throughout this process, and has sufficient liquidity to support its operations.
EP Energy intends to use this process to reduce its debt significantly, strengthen its balance sheet and better position the Company for the long-term.
The decision to undertake this financial restructuring follows a comprehensive review by a special committee of independent members of EP Energy’s Board of Directors, as well as extensive ongoing discussions with the Company’s creditors. On October 18, 2019, the Company entered into a Backstop Commitment Agreement and Plan Support Agreement (or PSA) with a number of its key creditors on the terms of a comprehensive restructuring plan.
This agreement demonstrates creditors’ confidence in the business and will enable EP Energy to work through the financial restructuring process on an expedited basis as operations continue without interruption. The EP Energy team remains focused on improving operational execution and capital efficiency and positioning the Company to succeed in the current operating environment.
The EP Energy Board and management team are confident in the strength of the Company’s assets and future of its business.