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Oil & Gas Bankruptcy Code Energy Sector

Holland & Knight LLP

Distressed Investing in Energy: Strategies and Risks in a Nutshell

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From a U.S. bankruptcy perspective, distressed debt investing is often based on two fundamental principles in the bankruptcy system: 1) a secured creditor is entitled to the value of its collateral in a given bankruptcy case...more

Jones Day

Energy Sector Update: More Bankruptcy Courts Join the Fray in Dispute Over Rejection of Gas Gathering Agreements

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In a leading precedent handed down in 2018—Sabine Oil & Gas Corp. v. Nordheim Eagle Ford Gathering, LLC (In re Sabine Oil & Gas Corp.), 734 Fed. Appx. 64 (2d Cir. May 25, 2018)—the U.S. Court of Appeals for the Second Circuit...more

A&O Shearman

Additional Guidance for Drafting Dedications: Delaware Bankruptcy Court Rejects Southland Dedication

A&O Shearman on

The oil and gas industry in the United States is highly dependent upon an intricate set of agreements that allow oil and gas to be gathered from privately owned land. Historically, the dedication language in oil and gas...more

Vinson & Elkins LLP

In re Chesapeake Energy Corporation And In re Extraction Oil & Gas, Inc.: New Rulings Against Midstream Gatherers Further Dividing...

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It is common for E&P companies in chapter 11 to seek to reject burdensome midstream contracts under Bankruptcy Code § 365. Rejection has not been permitted by bankruptcy courts where such agreements create enforceable...more

Holland & Hart LLP

Risky Business: Uncertain Outcomes for Application of Bankruptcy Code 365

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Variations in How States Treat Oil & Gas Leases Make Dispositions Complicated - Ability of a debtor to assume, assign, or reject oil and gas “leases” under section 365 of the Bankruptcy Code - Section 365(a) of the...more

Holland & Knight LLP

Midstream Providers Can Prepare for the Next Wave of Restructurings

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Even before coronavirus concerns, the slump in oil demand placed considerable financial stress on oil exploration and production companies. With Saudi Arabia and Russia unable to reach an agreement on crude production, oil...more

Jones Day

Oil and Gas Industry Update - Sabine Oil Not the Last Word on Treatment of Gathering Agreements in Bankruptcy

Jones Day on

In a leading precedent handed down in 2018—Sabine Oil & Gas Corp. v. Nordheim Eagle Ford Gathering, LLC (In re Sabine Oil & Gas Corp.), 734 Fed. Appx. 64 (2d Cir. May 25, 2018)—the U.S. Court of Appeals for the Second Circuit...more

King & Spalding

Bankruptcy Court Rules that Dedications Within Gathering Agreements "Run with the Land”

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On December 20, 2019, the Bankruptcy Court for the Southern District of Texas in Alta Mesa Holdings, LP v. Kingfisher Midstream, LLC (In re Alta Mesa Resources, Inc.) held that dedications in gathering agreements create...more

Pillsbury Winthrop Shaw Pittman LLP

A Sabine Alternative: Colorado Bankruptcy Court Holds Midstream Gathering Agreement Constitutes Covenant Running with the Land...

Dedication language is critical in determining whether a gathering agreement creates a covenant running with the land. Midstream companies now have a roadmap for ensuring that a debtor remains subject to a midstream...more

King & Spalding

Bankruptcy Court Rules that Dedications Within Gathering Agreements "Run with the Land"

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On December 20, 2019, the Bankruptcy Court for the Southern District of Texas in Alta Mesa Holdings, LP v. Kingfisher Midstream, LLC (In re Alta Mesa Resources, Inc.) held that dedications in gathering agreements create...more

Jackson Walker

Major Decision in Energy-Related Bankruptcies: Colorado Court in Monarch Midstream Case Departs from Sabine Oil and Finds...

Jackson Walker on

A Colorado bankruptcy court has departed from the widely reported holding in Sabine Oil that permitted a debtor to reject a certain midstream gathering agreement. On September 30, 2019, the United States Bankruptcy Court for...more

Holland & Hart LLP

Rejection of Gathering Agreements in Bankruptcy Affirmed by Second Circuit in Sabine Oil & Gas

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On May 25, 2018, the United States Court of Appeals for the Second Circuit confirmed in re Sabine Oil & Gas Corp. that a midstream gathering agreement did not create a real covenant that ran with the land, and therefore, a...more

McCarter & English, LLP

Third Circuit Ruling Impacts Oil & Gas Industry

The United States Circuit Court of Appeals for the Third Circuit issued a decision that significantly affects the rights of upstream producers. Applying Delaware law, the Third Circuit explained that the upstream producers...more

Gray Reed

Rejecting Midstream Agreements in Bankruptcy – the Journey Continues

Gray Reed on

One of the hottest issues from 2016 was whether an E&P debtor can reject, under section 365 of the Bankruptcy Code, an above-market midstream contract. Given the potential for a “no-win” situation, in all but one case where...more

King & Spalding

Energy Newsletter - September 2016

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Implementing Islamic Financing for Renewable Energy Projects - The Middle East and North Africa (MENA) region has recently seen a surge of interest in developing renewable energy, in particular solar energy projects. Led...more

King & Spalding

Bankruptcy and Midstream Contracts: Contract Parties Push Back

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In previous Energy newsletters, we have addressed one of the current hot topics in E&P bankruptcy cases – rejection of midstream contracts and declaratory relief that the “dedications” contained in those agreements are not...more

Perkins Coie

Environmental Liabilities in Oil & Gas Sales Under Bankruptcy Code Section 363

Perkins Coie on

Since the beginning of 2015, at least 77 companies in the oil and gas industry have sought bankruptcy relief in the United States. The flow of oil and gas company bankruptcies shows no sign of slowing down and, based on the...more

Troutman Pepper Locke

Drilling Deeper: The Intersection of Producer Bankruptcies and Gathering Agreements

Troutman Pepper Locke on

The issue of whether gathering agreements are subject to rejection in bankruptcy as executory contracts and whether certain provisions of those agreements run with the land and survive rejection will impact ongoing bankruptcy...more

BakerHostetler

Midstream Gathering Agreements Targeted by Recent Oil & Gas Bankruptcies

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Continuing low oil and natural gas commodity prices have led to bargain prices at the pump, but also high tension in many boardrooms. This strain on the industry has resulted in many exploration and production, or “E&P,”...more

McGuireWoods LLP

R&I Update: Hot Topics in Oil and Gas Restructurings, Volume 2 Can Gathering Agreements Be Rejected as Executory Contracts?

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“The carnage is going to be terrible,” cried a recent Dallas Morning News headline. “It’s a hellacious problem,” lamented another article. It’s no secret the energy sector has come upon hard times. Oil prices are down 70...more

Gray Reed

Can the E&P Debtor Reject Gas Gathering Agreements in Bankruptcy?

Gray Reed on

What’s a sure way to destroy untold millions of dollars of energy infrastructure value built in reliance on the promise of reimbursement for huge capital investments necessary to move a producer’s product to market for the...more

McGuireWoods LLP

R&I Update: Hot Topics in Oil and Gas Restructurings, Volume 1

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In 2015, the energy sector accounted for more than one-half of all public company bankruptcy filings, including eight of the 10 largest filings. Current oil prices and bond values indicate that 2016 will be another active...more

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