Sources: Gulfport Energy seeks advice from debt restructuring advisors
Friday, March 27, 2020
Gulfport Energy has hired an investment bank to help it tackle its roughly $2 billion in debt following the recent collapse in energy prices caused by an oil price war between Saudi Arabia and Russia, and the coronavirus pandemic, a source told Reuters.
Gulfport has retained Perella Weinberg Partners LP, and its energy advisory arm Tudor, Pickering, Holt & Co, to help determine options to improve its financial position. At this time, no debt restructuring move is imminent.
Before energy stocks bottomed out earlier this month, Gulfport Energy had been grappling with low gas prices and a board challenge from activist investor Firefly Value Partners. Since the start of the year the Oklahoma City-based natural gas producer has lost four-fifths of its market value.
Learn more: Reuters > Natural gas producer Gulfport Energy taps debt restructuring advisors: sources
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.