Alta Mesa Resources and Alta Mesa Holdings File Voluntary Bankruptcy Petition; Announce Leadership Changes
12 September 2019 - 9:00PM
Alta Mesa Resources, Inc. (NASDAQ: AMR “Alta Mesa Resources”), Alta
Mesa Holdings, LP (“Alta Mesa”), Alta Mesa Holdings GP, LLC, OEM
GP, LLC, Alta Mesa Finance Services Corp., Alta Mesa Services, LP
and Oklahoma Energy Acquisitions, LLC, or collectively “the
Companies”, today announced that they have filed a voluntary
petition under Chapter 11 of the United States Bankruptcy
Code. The Companies’ midstream platform, Kingfisher
Midstream, LLC and its subsidiaries are not debtors and are not
part of the Chapter 11 reorganization process.
Jim Hackett, Executive Chairman of Alta Mesa Resources,
commented “We believe that the Chapter 11 process provides the best
pathway for Alta Mesa Resources and Alta Mesa Holdings to
restructure their respective balance sheets and to regain the
financial flexibility necessary to develop their large position in
the STACK in a manner that will maximize value for all their
stakeholders.”
Despite considerable progress in reducing costs and improving
well results, the Companies continue to operate against a
historically challenging commodity price environment and a capital
market that is highly constrained for energy companies.
Ultimately, these factors made bankruptcy protection the best
option for the Companies as they continue production operations
while negotiating with their lenders.
Alta Mesa Resources also announced that its Board of Directors
has approved several leadership changes, in addition to prior
personnel decisions that the Companies have made. These
changes, which are effective immediately, will help provide a more
optimal management structure for the future and reduce general and
administrative costs. Jim Hackett, who recently held the
title of Interim Chief Executive Officer, has resumed his former
role as Executive Chairman and will remain involved with the Board
and management team in the restructuring process. Mark
Castiglione, who was previously Interim Executive Vice President
Strategy and Corporate Development, has been promoted to Chief
Executive Officer. Randy Limbacher, formerly Interim
President, has accepted the role of Executive Vice President of
Strategy, and will provide strategic counsel to the management team
and Board. John Campbell, formerly Interim Chief Operating
Officer, has become President and Chief Operating Officer.
Kim Warnica will continue as Executive Vice President, General
Counsel, Chief Compliance Officer and Secretary, while John Regan
will remain Executive Vice President and Chief Financial
Officer.
Jim Hackett commented on the leadership changes, “When I assumed
the Interim Chief Executive Officer role, I said that we would
endeavor to find the right individual to lead the organization as
it continues to progress forward with the development of our asset
base. Mark Castiglione has demonstrated the skills required
to lead this organization into the future, and he has the full
support of the Board. Mark has both a financial and technical
background and has served in engineering and business development
roles in several large- and medium-sized public and private
independent oil and gas companies. I am also very excited to
have Randy Limbacher maintain his relationship with Alta Mesa
Resources.”
Safe Harbor Statement and Disclaimer:
This press release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements, other than statements of historical fact,
including but not limited to, the Companies’ ability to restructure
their respective balance sheets are forward-looking statements.
When used in this press release, the words “could”, “should”,
“will”, “plan”, “believe”, “anticipate”, “intend”, “estimate”,
“expect”, “project” and similar expressions are intended to
identify forward-looking statements, although not all
forward-looking statements contain such identifying words.
Important factors that could cause actual results to differ
materially from those in the forward-looking statements herein
include, but are not limited to: the ability to confirm and
consummate a plan of reorganization; risks attendant to the
bankruptcy process, including the effects thereof on the Companies’
business and on the interests of various constituents, the length
of time that the Companies might be required to operate in
bankruptcy and the continued availability of operating capital
during the pendency of such proceedings; risks associated with
third party motions in any bankruptcy case, which may interfere
with the ability to confirm and consummate a plan of
reorganization; potential adverse effects on the Companies’
liquidity or results of operations; increased costs to execute the
reorganization; effects on the market price of AMR’s common stock
and on the Companies’ ability to access the capital markets; and
the risk factors and known trends and uncertainties as described in
the AMR and Alta Mesa Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K as filed with
the SEC. For a more detailed discussion of risk factors, please see
Part I, Item 1A, “Risk Factors” of AMR’s and AMH’s most recent
Annual Report on Form 10-K. Should one or more of these risks or
uncertainties occur, or should underlying assumptions prove
incorrect, actual results and plans could differ materially from
those expressed in the forward-looking statements. AMR assumes
no obligation and expressly disclaims any duty to update the
information contained herein except as required by
law.
Alta Mesa Resources’ Form 10-K is available for review on the
Company’s investor page at http://altamesaresources.irpass.com/ or
on the Securities and Exchange Commission website at
www.sec.gov.
About Alta Mesa Resources:Alta Mesa Resources,
Inc. is an independent energy company focused on the development
and acquisition of unconventional oil and natural gas reserves in
the Anadarko Basin in Oklahoma, and through Kingfisher Midstream,
LLC, provides best-in-class midstream energy services, including
crude oil and gas gathering, processing and marketing and produced
water disposal to producers in the STACK play.
FOR MORE INFORMATION CONTACT: Bruce Connery, Al Petrie Advisors,
bconnery@altamesa.net, 281-943-1375
15021 Katy Freeway, Suite 400 l Houston, Texas 77094 l (281)
530-0991 l www.altamesa.net
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