Fieldwood Closes On Noble Gulf Assets In “Remarkable” Bankruptcy Move

April 13, 2018
Even while in bankruptcy, Fieldwood Energy LLC has closed on it’s acquisition of all of Noble Energy‘s Gulf of Mexico deepwater oil and gas assets, increasing Fieldwood’s production by about 25%.

The effective date is retroactive to January 1st.

The Noble properties are already developed and are producing.

The $700 million deal was made possible in part by a more than $500 million cash injection from its private equity backers, Riverstone Holdings.

Fieldwood intends to specialize in Gulf drilling, while Noble’s plan has been to exit the Gulf to focus on its onshore assets and deepwater drilling outside the Gulf.

The bankruptcy court for the Southern District of Texas signed off on the deal as part of Fieldwood’s prepackaged bankruptcy plan, which is likely to include the reduction of Fieldwood’s debt from about $3 billion down to about $1.4 billion, eliminating $134 million in annual cash interest along the way.

Fieldwood CEO Matt McCarroll emphasized that, with a “strengthened balance sheet, substantially more cash flow and the new, talented deepwater operating team, we are well positioned to capitalize on future opportunities while executing our safe and efficient operations strategy to create long-term value.”

In a statement, Fieldwood noted that “the entire restructuring and recapitalization process was remarkable in that it included a major acquisition, received a 100% vote of approval from lenders and attracted 100% participation in the equity rights offering.”