Sable Permian Resources files bankruptcy, will initiate sale process

By Caroline Salls

Pittsburgh, June 26 – Sable Permian Resources, LLC filed Chapter 11 bankruptcy Thursday in the U.S. Bankruptcy Court for the Southern District of Texas.

Restructuring services provider Prime Clerk said on Sable’s case website that the company is working with its advisers and stakeholders on a range of strategic alternatives that will maximize value and position Sable for long-term success.

Sable said in documents filed with the court that it is immediately initiating a sale process, required by its RBL parties, to test the market and maximize the value of its assets. The company said it will consider all proposals submitted, whether in the form of a court-supervised sale or a Chapter 11 plan.

In conjunction with the bankruptcy filing, Sable has obtained a commitment for $150 million in debtor-in-possession financing.

The DIP financing includes $75 million in new-money financing and a $75 million rollup of pre-bankruptcy credit agreement obligations.

JPMorgan Chase Bank, NA is the administrative agent.

The financing will mature on the earlier of five months and 15 days from the bankruptcy filing date and the closing of an approved sale.

Interest will accrue at the alternate Base rate plus 400 basis points with a 2% floor or Libor plus 500 bps with a 1% floor.

The company is seeking interim access to $30 million of the financing.

The proposed DIP financing requires Sable to file an asset sale procedures motion within 30 days from the bankruptcy filing date.

In addition, the company sought court approval of a number of customary first-day motions, including requests to continue to operate in the normal course of business without interruption to its relationships with its royalty interest holders, working interest holders, joint billing partners, customers, suppliers, vendors and employees.

According to court documents, Sable has $1 billion to $10 billion in both assets and debt.

The company’s largest unsecured creditors are Wilmington Trust, NA of Minneapolis, with a $28.14 million 7 1/8% notes claim and a $9.37 million 7 3/8% notes claim; US Well Services LLC of Houston, with a $17.55 million trade claim; Halliburton, based in Houston, with an $11.61 million trade claim; Select Energy Services of Houston, with a $4.33 million trade claim; WTG Fuels Inc. of Midland, Tex., with a $1.83 million trade claim; Archrock Services LP of Houston, with a $1.62 million trade claim; and Pilot Water Solutions LLC of Baton Rouge, La., with a $1.2 million trade claim.

Hunton Andrews Kurth LLP is representing the company in its Chapter 11 proceedings.

Sable is a Houston-based oil and gas acquisition, development, and optimization company. The Chapter 11 case number is 20-33193.

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