Gulfport Energy filed for voluntary Chapter 11 bankruptcy on Nov. 14, according to the company.
The Oklahoma City-based company said through the bankruptcy, it hopes to reorganize to reduce debt by about $1.25 billion.
They entered into a Restructuring Support Agreement with more than 95% of the company's revolving credit facility lenders and certain noteholders.
David M. Wood, President and Chief Executive Officer of Gulfport Energy, released the following statement:
“Since Gulfport’s leadership team was reconstituted in 2019, we have taken decisive actions to streamline our business, strengthen our balance sheet, focus on cash flow generation, exercise capital discipline, and drive operational efficiencies and cost reductions across the Company. Despite these efforts, our large legacy debt burden in addition to significant legacy firm transportation commitments created a balance sheet and cost structure that was unsustainable in the current market environment. After working diligently to explore all strategic and financial options available, Gulfport’s Board of Directors determined that commencing a chapter 11 process is in the best interest of the Company and its stakeholders.
“We expect to exit the chapter 11 process with leverage below two times and rapidly delever thereafter due to a much-improved cost structure driven by reduced legacy firm transport commitments and costs. These improvements will significantly improve our ability to generate cash flow and value for our stakeholders going forward.
“I want to thank our creditors, financing partners and other stakeholders for their support. We also deeply appreciate the hard work of our dedicated employees and their commitment to each other and to our valued business partners. We hope to move through the restructuring process quickly and efficiently and emerge as a stronger company positioned for future success.”
Additional information regarding Gulfport’s chapter 11 filing will be available at www.gulfportenergy.com/restructuring.