A Fort Worth oil company became the 18th driller in Texas to succumb to the oil slump.
Energy & Exploration Partners announced that it filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in order to deleverage its balance sheet and achieve a viable capital structure for building long-term value.
The company said capital markets have closed to producers in the wake of $40 oil, leaving it unable to raise funds that could have prevented bankruptcy.
“We have taken this difficult, but necessary step in order to provide adequate time to complete ongoing discussions and process with our lenders to restructure our balance sheet and create a strong financial foundation for the future,” Founder and CEO Hunt Pettit said.
Crude oil prices fell as low as $36.64 per barrel on Tuesday, before rising to $37.88 in early trading on the New York Mercantile Exchange.
Low prices were not the only hardship the company faced this year. According to Fuel Fix, heavy rainfall cut off roads leading to Energy & Exploration’s East Texas oil fields near the Trinidad River, cutting nearly half of the company’s crude production.
According to a press release, Energy & Exploration Partners continues to work closely with its suppliers and business partners to ensure sure business continues uninterrupted. The company expects to continue producing oil and gas and maintain adequate staff.
The company recently cut 15 employees and saw several managers resign, including the chief operating officer.
Energy and Exploration Partners was founded in 2006 and focuses on the acquisition, exploration and development of unconventional oil and gas resources. The company works in Texas, Colorado and Wyoming.