Los Angeles Downtown-based oil company Breitburn Energy Partners has emerged from its two-year bankruptcy under a new name: Maverick Natural Resources.
Maverick stated it began operations on April 6, according to a press release issued on April 12.
The company is majority-owned by EIG Global Energy Partners, a Washington D.C.-based energy investment firm with $17.7 billion in assets under management. EIG assumed a stake worth $1 billion in Breitburn in March 2015, and was one of the largest creditors of the company after it filed for bankruptcy a year later.
A separate filing from Breitburn’s bankruptcy attorneys on April 12 stated that the U.S. Bankruptcy Court for the Southern District of New York confirmed the company’s reorganization plan on March 26.
Maverick’s press release said that it emerged from bankruptcy with a debt of about $105 million and borrowing capacity of $295 million. Breitburn entered bankruptcy with $2.96 billion in debt.
The bankruptcy reorganization plan called for Breitburn to be split into two parts: one with assets in the prime oil producing West Texas Permian Basin, and the other part consisting of Breitburn’s remaining holdings in the northern Midwest region, the Rocky Mountains and California.
Maverick comprises the non-Permian assets of the former Breitburn.
The assets in Permian Basin have been assigned to a small group of secured creditors.
The press release also stated that in 2017, Breitburn, operating while in bankruptcy, produced an average of nearly 40,000 barrels of oil a day.
Maverick currently has about one million gross acres in holdings and about 11,500 wells.
Neither the press release, the bankruptcy reorganization plan, nor the SEC filing stated where Maverick is headquartered. A spokesman for Maverick declined to respond to that question last week.
Halbert Washburn, one of the founders of Breitburn Energy and its longtime chief executive, has taken the same post at Maverick, according to the press release. William Sonneborn of EIG Global Energy Partners is Maverick’s president; two other EIG executives are also on Maverick’s five-member board.
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