Gulfport Energy Corp. filed for bankruptcy, joining a slew of U.S. oil and gas companies that are collapsing after the pandemic deepened their struggle with low prices and too much debt, Bloomberg News reported. The Oklahoma City-based natural gas company filed a chapter 11 petition on Nov. 13 in U.S. Bankruptcy Court in Houston, declaring an estimated $2.5 billion in liabilities as of Sept. 30. In a statement Saturday, the company detailed a restructuring plan that it expects would cut debt by about $1.25 billion. “We expect to exit the chapter 11 process with leverage below two times and rapidly delever thereafter,” Chief Executive Officer David M. Wood said. “These improvements will significantly improve our ability to generate cash flow and value for our stakeholders going forward.” Gulfport, which produces gas from fields in Ohio and Oklahoma, was grappling to stay afloat even before COVID-19, after a series of acquisitions over the past decade left it too indebted to weather the energy rout. Following pressure from activist investor Firefly Value Partners to change its board, the company on Aug. 7 warned it might not be able to stay in business if it failed to refinance its debt. Many investors have shunned producers operating outside of the Permian Basin of West Texas and New Mexico, the most prolific U.S. oil patch, amid growing doubts about their ability to generate returns. BlackRock Inc., with 12.9 percent, is the biggest controller of voting shares in Gulfport. Read more.
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