HOUSTON, March 6, 2020 /PRNewswire/ -- EP Energy
Corporation ("EP Energy" or the "Company") (OTC Pink: EPEGQ) today
announced that the United States Bankruptcy Court for the
Southern District of Texas (the
"Court") has confirmed the Company's Plan of Reorganization (the
"Plan"). The Company expects to complete its financial
restructuring process and emerge from Chapter 11 bankruptcy
protection as a private company in the coming weeks.
Upon emergence, the Company will reduce its debt by
approximately $3.3 billion, will
receive approximately $629 million in
senior secured exit financing from the Company's existing revolving
loan lenders, and approximately $325
million of new-money equity financing from certain
of its existing noteholders. Such deleveraging and financing
will ensure that EP Energy will have greater financial flexibility
to support ongoing operations.
President and Chief Executive Officer Russell Parker said, "This milestone represents
the commitment of our financial restructuring, which is being
achieved on an expedited basis thanks to the support of our
creditors and stakeholders and their confidence in our long-term
value creation opportunities. Confirmation of our Plan enables EP
Energy to begin taking the final steps in a process that will
significantly reduce our debt and strengthen our capital structure.
Based on the strength of our assets and our continued improvement
on our operational execution and capital efficiency, EP Energy is
poised to succeed in this operating environment and drive value for
all our stakeholders."
Mr. Parker continued, "I want to thank our dedicated team of
employees, who have maintained an unwavering focus and advanced our
turnaround plan in the face of continued challenging industry
dynamics. On behalf of the EP Energy Board and management team, I
also want to express my appreciation for the continued partnership
and support of our vendors, lessors and royalty owners. We look
forward to completing this process over the coming weeks and
beginning our next, stronger chapter together."
Additional Information
Additional resources for vendors, royalty owners, lessors and
other stakeholders is available on EP Energy's restructuring
website at www.EPEnergyRestructuring.com. Court filings and other
documents related to the Chapter 11 process are available on a
separate website administered by EP Energy's claims agent, Prime
Clerk, at https://cases.primeclerk.com/EPEnergy. Information is
also available by calling 877-502-9869 (toll-free in the U.S.) or
+1-917-947-2373 (for calls originating outside the U.S.) or sending
an email to EPEnergyinfo@primeclerk.com. Additional information
regarding the Chapter 11 filing is contained in a Current Report or
Form 8-K filed with the Securities and Exchange Commission.
Weil, Gotshal & Manges LLP is serving as the Company's legal
counsel, Evercore LLC is serving as financial advisor and FTI
Consulting, Inc. is serving as restructuring advisor.
About EP Energy Corporation
The company focuses on enhancing the value of its high quality
asset portfolio, increasing capital efficiency, maintaining
financial flexibility, and pursuing accretive acquisitions and
divestitures. EP Energy is working to set the standard for
efficient development of hydrocarbons in the U.S. Learn more at
epenergy.com.
Forward Looking Statements
This release includes certain forward-looking statements and
projections of EP Energy. Such statements are subject to risks and
uncertainties that could cause results to differ materially from
the Company's expectations, including the following: risks and
uncertainties relating to the Company's chapter 11 cases (the
"Chapter 11 Cases"), including but not limited to, the effects of
the Chapter 11 Cases on the Company and on the interests of various
constituents, Bankruptcy Court rulings in the Chapter 11 Cases and
the outcome of the Chapter 11 Cases in general, the potential
adverse effects of the Chapter 11 Cases on the Company's liquidity
or results of operations; the Company's ability to obtain
debtor-in-possession financing and the amount, terms and conditions
of any such financing; uncertainty associated with evaluating and
completing any strategic alternatives as well as the Company's
ability to implement and realize any anticipated benefits
associated with any alternative that may be pursued; risks related
to the expected deregistration of the common stock of EP Energy,
and the suspension of our Securities and Exchange Commission
reporting obligations; the effects of disruption from the Chapter
11 Cases making it more difficult to maintain business and
operational relationships, to retain key executives and to maintain
various licenses and approvals necessary for the Company to conduct
its business; the consequences of the acceleration of the Company's
debt obligations; risks related to the trading of the Company's
securities on the OTC Pink Market; as well as the risk factors
described in the Company's Annual Report on Form 10-K for the year
ended December 31, 2018, as updated
in the Company's subsequently filed Quarterly Reports on Form 10-Q.
While the Company makes these statements in good faith, neither the
Company nor its management can guarantee that anticipated future
results will be achieved. The Company assumes no obligation to
publicly update or revise any forward-looking statements made
herein or any other forward-looking statements made by the Company,
whether as a result of new information, future events, or
otherwise. All forward-looking statements attributable to the
Company or persons acting on the Company's behalf are expressly
qualified in their entirety by the foregoing cautionary statements.
All such statements speak only as of the date made, and, except as
required by law, the Company undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result
of new information, future events or otherwise.
Contacts:
Investors
Jordan
Strauss
Investor and Media Relations
(713) 997-6791
Jordan.strauss@epenergy.com
Media
Meaghan Repko /
Jed Repko
Joele Frank Wilkinson Brimmer
Katcher
(212) 355-4449
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SOURCE EP Energy Corporation