HOUSTON, Aug. 27, 2020 /PRNewswire/ -- EP Energy
Corporation ("EP Energy" or the "Company") today announced that the
United States Bankruptcy Court for the Southern District of
Texas (the "Court") has confirmed
the Company's Amended Plan of Reorganization (the "Amended Plan").
The Company expects to complete its financial restructuring process
and emerge from Chapter 11 bankruptcy protection by October 1, 2020.
Upon emergence, EP Energy will reduce its debt by approximately
$4.4 billion and receive $629 million in senior secured exit financing
from the Company's existing revolving loan lenders. In total, the
restructuring process will have eliminated approximately 90% of
pre-petition funded debt and over 90% of pre-petition annual cash
interest expense. Following completion of the process, EP Energy
expects to have less than $500
million of debt and a new three-year reserve based loan
credit facility.
President and Chief Executive Officer Russell Parker said, "We are pleased to have
received court approval of our Amended Plan, which enables us to
emerge from this process with a strong balance sheet and
sustainable business model that is positioned for success
throughout commodity cycles – including today's challenging
operating environment and historically low oil prices. We expect to
generate significant free cash flow on a go-forward basis which
will provide valuable flexibility to create value for our
stakeholders."
Mr. Parker continued, "I want to thank our dedicated employees
for their commitment and unwavering focus to help us reach this
important milestone in EP Energy's financial transformation. I also
want to thank our banks, which have provided invaluable support to
the Company with the Debtor-In-Possession and Exit Facility
financings. 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 a new, stronger chapter."
Additional Information
Additional resources for vendors, royalty owners, lessors and
other stakeholders is available on EP Energy's restructuring
website at www.epenergy.com/restructuring.html. 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.
Weil, Gotshal & Manges LLP is serving as the Company's legal
counsel, Evercore 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. 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.
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SOURCE EP Energy Corporation