Fieldwood Energy filed Ch. 11 the same day it announced it would acquire Noble Energy's GOM assets.
https://www.chron.com/business/energy/article/Fieldwood-Energy-files-for-bankruptcy-makes-12617099.php
7 replies (most recent on top)
I guess we will see how terribly Fieldwood will do with these assets. There’s no way they realize how capital extensive, the Deep can be. Let’s be real. The shelf bankrupt you. The Deep will do even worse.
Great. All in the family. Daddy bails out Junior after Junior’s business goes bust. Daddy takes the hit, but he does it for love. Question is how much love does Daddy have for Junior? Enough to keep bailing him out? With 500 mature shelf blocks Junior will be needing a lot more love.
As a GOM employee, it’s been fun and I’ve enjoyed it. We all wish it didn’t have to be this way. The show must go on and we all be alright.
Fieldwood is a private company. The majority of its debt was owned by its largest equity holder, Riverstone.
Riverstone takes equity in place of debt in the bankruptcy at a discount. Riverstone can write off that bad debt against its earnings. The trick is that it was basically bad debt to itself. The whole process is a financial shuffle that public companies can’t pull off. I don’t see much of a future in publicly traded offshore independents. Not enough financial tools available to compete with private money.
That’s the point
How exactly does that work? Sounds like poor thinking
Only Noble would agree to sell assets to a company in chapter 11. It’s part of that “breakthrough thinking” and “don’t get lost in the weeds thing”. LMAO