On November 13, 2020, Gulfport Energy Corporation commenced a process to restructure our balance sheet comprehensively and improve our cost structure by filing petitions for voluntary relief under chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas (the “Court”). While the Board of Directors and our new leadership team have taken decisive actions since mid-2019 to strengthen our financial position, the Company’s large legacy debt burden in addition to significant legacy firm transportation commitments have made this the best path forward for the Company. We are confident Gulfport will emerge as a stronger and more competitive company with a more sustainable capital structure.
Gulfport will continue to operate in the ordinary course of business. We have secured $262.5 million in debtor-in-possession (“DIP”) financing from the Company’s existing lenders under its revolving credit facility, including $105 million in new money. The Court has authorized Gulfport to borrow up to $90 million of this new money. We also have received a commitment from certain of such lenders to provide $580 million in exit financing upon emergence from chapter 11. These credit facilities are expected to provide Gulfport with ample liquidity to fund its operations both during and after the restructuring process.
In connection with the filing, Gulfport has also entered into a Restructuring Support Agreement (“RSA”) with over 95% of its revolving credit facility lenders and certain noteholders holding over two-thirds of the outstanding aggregate principal amount of its senior unsecured notes. Attached to the RSA is a “pre-negotiated” restructuring plan (the “Plan”) that will strengthen Gulfport’s balance sheet, significantly reduce its funded debt, and lower ongoing operational costs. Pursuant to the RSA and the Plan, Gulfport expects to eliminate approximately $1.25 billion in funded debt and significantly reduce its annual cash interest expense going forward. Gulfport will also issue $550 million of new senior unsecured notes under the Plan to existing unsecured creditors of certain Gulfport subsidiaries. Certain of Gulfport’s noteholders have committed to a minimum new money investment of $50 million in the form of convertible preferred stock.
Gulfport expects 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.
For additional information about the process, please refer to the materials below.
- Press Release
- First Day Motions Press Release
- General FAQ
- Employee FAQ
- Royalty Owner FAQ
- Supplier / Vendor FAQ
- Investor FAQ
If you have additional questions about the process, please refer to the materials on this site or visit our claims agent’s website at https://dm.epiq11.com/Gulfport, or call our claims agent at (888) 905-0409 (toll free) or +1 (503) 597-7687 (international).