GMX files for Chapter 11 bankruptcy protection
From the Houston Chronicle.
Oil and gas producer GMX Resources Inc. said Monday that it filed for Chapter 11 bankruptcy protection, blaming low prices for natural gas.
The Oklahoma City company filed in the Western District of Oklahoma. The filing includes its Endeavor Pipeline and Diamond Blue Drilling units. It does not include Endeavor Gathering LLC, a business in which GMX holds a 60-percent interest.
GMX says it pursued several strategies to increase oil production, make its supply chain and production more efficient, and reduce costs. However the price of natural gas has remained low and the company’s oil and gas businesses require more spending. GMX said it hasn’t been able to find any long-term solutions to its financing needs.
GMX says it agreed to sell its operating assets and undeveloped acreage to the owners of company senior notes that are due in 2017. Those assets will later be subject to a public auction.
The senior note holders have committed $50 million in debt financing to cover its operating expenses.
The company expects the New York Stock Exchange to begin delisting procedures for its stock. It does not plan to contest those proceedings.
Shares of GMX Resources have traded between $1.80 and $21.84 in the last year, and they closed at $2.19 on Friday.
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Replies to This Discussion
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Permalink Reply by dbob on -
I'm not Jay, nor have I stayed at a Holiday Inn Express (TM) recently. That said, there has been some fairly significant short range variability in production and operator interest. I think some of what has been seen over the last 18 months is not indicative of the rock as a whole, but a combination of operators avoiding marginal areas, trying to produce for highest cash flow (in some cases) and using restricted choke programs in others. $6 gas would make ok rock look great.... Incremental improvements in recovery efficiency and EUR/$ continue.
one of the other interesting questions - since this thread is so far off GMX it isn't even funny - which other operators will disappear from the Haynesville over the next 12 months, either through bankruptcy, buyout, or sellout?
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Permalink Reply by Skip Peel - Mineral Consultant on
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I was wondering when someone would note the thread going off track. It was usually The Baron that made that observation. He even had a cute little right turn sign. dbob does a Holiday Inn Express give the same boost in technical expertise as a regular Holiday Inn? I think the question is a good one but it's also one that may not have a definitive answer. So many variables. However the variance in rock quality has become largely defined IMO. At least for the major operators. I don't know if EXCO is most likely to cease HS operations, one way or the other, but I think Jay would join me in nominating them.
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Permalink Reply by adubu on
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Skip --I agree with dbob We way off subject but discussion is good and interesting so I just start new discussion on subject of EUR of shale
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Permalink Reply by Skip Peel - Mineral Consultant on
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Good idea.
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Permalink Reply by dbob on
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After staying at a Holiday Inn Express, I absorb the combined knowledge of all those who stayed before me, landmen, petroleum geologists, lawyers, etc. Works pretty well except for the time I stayed in the room previously inhabited by by "Butch" the Whitney Houston impersonator. Some knowledge requires vast amounts of therapy, alcohol, mailbox money, or other means to forget.
Also kinda regretted it after staying in one that had the "Duck Dynasty" cast....
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Permalink Reply by Two Dogs, Pirate on
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We have had a bunch of questions asked that have no answer. Some folks have tried to push some subjects to the point where they have gave the more knowledgable folks the Red A$$ to the point that they have quit posting. If some of original folks here on GHS could all get together and have a prayer session to bring back the ghost of Jim McConnel from the dead to run some of the spooks off it would be much ablidged by me. This reply has nothing to do with the folks that are new to GHS. You are all welcome to ask your questions but you may be limited in your answers due to the fact that some of our best minds have left the site.
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Permalink Reply by Two Dogs, Pirate on
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dbob, I ain't talking about you.
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Permalink Reply by Two Dogs, Pirate on
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We have a bunch of folks that have a lot of experience with oil and gas here on GHS but we have lost a bunch ie KB (Caliente), Baron and LesB.
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Permalink Reply by Andrew on
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EXCO's drilling decisions in the HS won't align with rationality for some time. They're hamstrung by a bad JV that is requiring them to keep drilling unprofitable wells. I saw an article that quoted T. Boone Pickens as saying to the board "For the love of God, stop drilling the Haynesville Shale!"
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Permalink Reply by Malcolm Evans on
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My Feb GMX royalty check bounced like a rubber ball. And they had the audacity to send me a March check. Does anyone know where royalty owners stand in the line of creditors? I can just imagine. I'm sure we'll get paid before the big boys. Snark.
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