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Oasis Petroleum Successfully Completes Financial Restructuring

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HOUSTON, Nov. 19, 2020 /PRNewswire/ — Oasis Petroleum Inc. (“Oasis Petroleum” or the “Company”) today announced that it has successfully completed its financial restructuring and emerged from Chapter 11. Oasis Petroleum has successfully restructured its balance sheet and reduced its prepetition debt by $1.8 billion and resolved the Mirada litigation, pursuant to its restructuring support agreement and “pre-packaged” restructuring plan (the “Plan”) confirmed by the Bankruptcy Court on November 10, 2020. Oasis Petroleum’s new common stock is expected to commence trading on NASDAQ under the ticker symbol OAS at market open on November 20, 2020.

Chairman of the Board, Douglas E. Brooks said, “On behalf of the new board of directors, I would like to acknowledge our appreciation to our employees for their diligent work during this process.  Oasis is now uniquely positioned with a best-in-class balance sheet, a quality and sustainable long-lived asset base, and a rigorous new capital discipline that should translate into long-term value creation for our shareholders.  This new direction for Oasis will be executed within a strong ESG culture to provide value for all stakeholders. The offices of the CEO and Non-Executive Chairman have been separated to reflect the broader strategic issues including, but not limited to, balancing cash returns and growth initiatives while maintaining operational excellence and sound environmental stewardship.”

Restructuring Highlights

Oasis’ new capital structure includes a new $575 million reserve-based revolving credit facility (“New RBL Facility”) maturing in May 2024. Oasis’ unsecured claims, including holders of Oasis’ senior unsecured notes, received their proportionate distribution of 100% of Oasis’ newly issued common stock (subject to dilution).

New RBL Facility

  • $575 million borrowing base
  • $340 million drawn at emergence
  • First borrowing base redetermination scheduled for April 1, 2021
  • Matures May 2024
  • LIBOR + 300-400 bps rate with 100 bps floor

New Common Equity and Warrants

  • Equity allocated to unsecured note holders: Approximately 20 million shares of common stock outstanding
  • Shares authorized at emergence: 60 million shares
  • Shares reserved for Long Term Incentive Plan, which constitutes the Management Incentive Plan: approximately 2.4 million shares
  • Warrants to current Oasis Petroleum shareholders: Approximately 1.6 million warrants exercisable for one share of common stock at an initial exercise price of $94.57, expiring on November 19, 2024.

New Board of Directors

Oasis Petroleum has appointed a new Board of Directors effective today composed of experienced industry professionals with a clear understanding of the expectations and objectives of shareholders.  Douglas E. Brooks has been named Chairman of the Board.  The new Board of Directors consists of seven members (six of whom are independent) including: Douglas E. Brooks (Chairman), Thomas B. Nusz (CEO), Samantha Holroyd, John Jacobi, N. John Lancaster, Jr., Robert McNally and Cynthia L. Walker.  Biographies for the new board members can be found on the Company’s website www.oasispetroleum.com.

Pro Forma Capital Structure Details

In accordance with the Plan, approximately $1.8 billion in pre-petition senior unsecured notes have been equitized resulting in $112.5 million in annual interest savings. Details of the Company’s pro forma capital structure and liquidity, excluding Oasis Midstream Partners, are outlined below:

Pro Forma Capital Structure after Emergence ($ millions)






as of


Pro Forma as of

Debt at Principal Value


Sep 30, 2020

Restructuring

 Nov 19, 2020

RBL Facility:





Old RBL Facility


$361

($361)

$0

New RBL Facility



340

340

Sub-Total RBL Facility


$361

($21)

$340






Senior Unsecured Notes:





6.500% senior unsecured notes due November 1, 2021


$44

($44)

$0

6.875% senior unsecured notes due March 15, 2022


834

(834)

0

6.875% senior unsecured notes due January 15, 2023


308

(308)

0

6.250% senior unsecured notes due May 1, 2026


395

(395)

0

2.625% senior unsecured convertible notes due September 15, 2023

245

(245)

0

Sub-Total Senior Unsecured Notes


$1,826

($1,826)

$0

Total Debt


$2,187

($1,847)

$340






Liquidity





Borrowing Base


$438

$137

$575

(-) Borrowing under revolver


361

(21)

340

(-) Pro forma LCs


77

(36)

41

(+) Cash


50

(34)

16

Total Liquidity


$50

$160

$210

Chief Executive Officer and Director, Thomas B. Nusz said, “Today marks a new beginning for Oasis Petroleum. We are emerging from the bankruptcy process as an even stronger company with an intense focus on generating sustainable returns and positive free cash flow coupled with a sharp goal of creating long term value for our shareholders.  These outcomes will be achieved by further cost reductions, new efficiencies, and strategic repositioning to reflect the current industry conditions.  

I’d like to express our gratitude to our stakeholders including our regulators, vendors, customers, royalty interest owners, working interest owners and surface owners for their partnership throughout this process. The support of our lenders and noteholders has also been critical to the efficient completion of our financial restructuring. Finally, I want to thank our employees for their ongoing dedication to safety and execution. We look forward to operating efficiently, safely and responsibly, for the benefit of our stakeholders and communities, as we maximize our value for shareholders.”

Hedging

Oasis Petroleum currently has 29 mbopd swapped at $42.09 per barrel in 2021, 19 mbopd swapped at $42.74 per barrel in 2022, and 14 mbopd swapped at $43.68 per barrel in 2023.

Listing on the NASDAQ

In connection with emergence from Chapter 11, all of the Company’s existing equity interests will be cancelled, effective before the market opens on November 20, 2020. Shares of the Company’s new common stock will commence trading on the NASDAQ under the ticker symbol “OAS” on November 20, 2020.

Details of the restructuring, the securities issued pursuant to the Plan and the debt and other agreements entered into as part of the Plan will be provided in a Form 8-K which can be viewed on the Company’s website or the Securities and Exchange Commission’s website at www.sec.gov.

Oasis posted Select Financial and Operational Detail on the Company’s website today at http://oasispetroleum.investorroom.com/non-gaap. Oasis plans to share updated information and will post an updated investor presentation in the coming weeks on its website at www.oasispetroleum.com.

As previously disclosed, Oasis Midstream Partners (NASDAQ: OMP), an independent legal entity operated as a master limited partnership, and all subsidiaries in which it owns an equity interest were not included in Oasis Petroleum’s Chapter 11 proceedings.

Advisors

Tudor, Pickering, Holt & Co. and Perella Weinberg Partners are acting as financial advisors for the Company, Kirkland & Ellis LLP is acting as legal advisor and AlixPartners, LLP is acting as restructuring advisor.

Evercore is acting as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Porter Hedges LLP are acting as legal advisors to the Ad Hoc Committee of Senior Noteholders.

About Oasis Petroleum Inc.

Oasis is an independent exploration and production company focused on the acquisition and development of onshore, unconventional crude oil and natural gas resources in the United States. For more information, please visit the Company’s website at www.oasispetroleum.com.

Forward-Looking Statements

This press release contains forward-looking statements that involve a number of risks and uncertainties, including those detailed in the Company’s filings with the SEC, including the Company’s most recent Form 10-Q and its 2019 Form 10-K. These risks and uncertainties are incorporated by this reference as though fully set forth herein. These forward-looking statements include the Company’s ability to successfully capitalize on the reorganization and operate on a long-term basis. There is no assurance that the goals and timing herein can or will be met. In addition, any forward-looking statements represent the Company’s estimates only as of today and should not be relied upon as representing its estimates as of any future date. Oasis assumes no obligation to update its forward-looking statements.

SOURCE Oasis Petroleum Inc.

Related Links

http://www.oasispetroleum.com

Source: https://www.prnewswire.com:443/news-releases/oasis-petroleum-successfully-completes-financial-restructuring-301177693.html

Energy

Dakota Power wins N.J. project approval, has billion-dollar solar plans

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In addition to the 50 MW project, Dakota Power Partners has proposed developing at least five more utility-scale solar facilities across the Garden State.

Dakota Power Partners, which said it intends to invest $1 billion in utility-scale solar in New Jersey, has won approval for the developer’s first solar farm as part of what could become a large project portfolio.

The Millville Planning Board unanimously approved the 50 MW solar farm during its monthly meeting on January 12, clearing the way for construction to begin by year’s end. Called Nabb Solar I, the project will be located in western Millville and is anticipated to begin operation in fall 2022.

Timothy Daniels, Dakota’s principal and co-founder, said the local officials were “quick to see the value of this project.”

Over the 30-year expected life of the project, Nabb Solar I is estimated to generate a total of approximately $7.8 million in taxes. Dakota said it will pay annual real estate taxes of approximately $102,295 to the City of Millville, $67,547 to Millville Public Schools, and $98,166 to Cumberland County, for a total of $268,008 in local taxes per year.

Joe Derella, director of the Cumberland County Board of Commissioners, called the project a “massive $70 million investment in our region” that will create hundreds of jobs.

“This is what the future of energy looks like in New Jersey,” said Millville Mayor Mike Santiago.

Nabb Solar I is one of six similar New Jersey projects being proposed by Dakota Power Partners, which has offices in Millville and Denver, Colorado. In total, Dakota is proposing a $1 billion utility-scale solar investment in the Garden State.

Utilizing a portfolio of utility-scale solar and solar+storage projects across the state, the company said it intends to achieve generating capacity totaling more than 1 GW in New Jersey.

According Dakota, the company has participated in the development of more than 3.15 GW of operating and in-construction wind and solar projects around the U.S., representing an aggregate capital investment in rural communities in excess of $3.8 billion.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Source: https://pv-magazine-usa.com/2021/01/25/dakota-power-wins-n-j-project-approval-has-billion-dollar-solar-plans/

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National lab and Youngstown State partner to develop battery manufacturing workforce

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Electric vehicle

The U.S. Department of Energy’s (DOE) Oak Ridge National Laboratory is partnering with Ohio’s Youngstown State University on a $1 million project to advance workforce development for the battery manufacturing industry.

According to the DOE, the new Energy Storage Workforce Innovation Center will serve as a training center based in the Midwest. It will support the battery and electric vehicle (EV) manufacturing industry in the northeast region of Ohio–referred to as “Voltage Valley” due to the EV sector’s regional investments–by helping supply a capable workforce.

The DOE said the U.S. is in a period of “tremendous advancement in battery technologies, presenting new opportunities for electric vehicles and energy storage systems,” and it’s essential to “prepare a workforce that will lead the next generation of energy storage technologies into practice.”

This effort supports the DOE’s Energy Storage Grand Challenge, which draws on the research capabilities of the U.S. national laboratories, universities, and industry to accelerate the development of energy storage technologies. The DOE added that the Energy Storage Grand Challenge Roadmap outlines a department-wide strategy to accelerate innovation across a range of storage technologies and develop a skilled workforce based on three concepts: Innovate Here, Make Here, and Deploy Everywhere.

U.S. Rep. Tim Ryan, representing Ohio’s 13th District, called this new partnership a “great example of how government can work to bolster efforts on the ground in our community to dominate in the clean energy economy.”

The $1 million project is sponsored by the DOE’s Office of Energy Efficiency and Renewable Energy’s Vehicle Technologies Office and the Advanced Manufacturing Office.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Source: https://pv-magazine-usa.com/2021/01/25/national-lab-and-youngstown-state-partner-to-develop-battery-manufacturing-workforce/

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Energy

Drought conditions could impact power generation in the West

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Ongoing drought and low snowpack mean that hydro production at two big dams could be impacted, affecting the West’s power supply in 2021.

Ongoing drought in parts of the West could trigger water conservation measures across seven states this year.

It would mark the first time that cutbacks outlined in drought contingency plans drafted two years ago have been put in place.

Everything from hydroelectric power generation to agricultural production to the bubbling fountains at Las Vegas casinos could be impacted.

Impacts on hydro generation could have ripple effects across the Southwest, including solar and energy storage.

A forecast released in mid-January by the U.S. Bureau of Reclamation said that the federally owned Lake Mead and Lake Powell — the nation’s two largest reservoirs and critical storage for Colorado River water and its 40 million users — are both approaching near-record-low levels. If those levels continue dropping as expected, agreements signed by the seven Colorado River Basin states in 2019 will go into effect, with water deliveries curtailed to keep the federal government from stepping in and imposing cuts of its own.

The Upper Colorado River basin region includes all or parts of Arizona, Colorado, Idaho, Nevada, New Mexico, Texas, Utah, and Wyoming. Drought has been an ongoing problem across much of the region for most of the century. The Bureau of Reclamation’s latest quarterly report showed Lake Powell at 42% of capacity and Lake Mead at 40%.

Three hydro plants that could be affected as water levels fall are the 1,312 MW station built at Glen Canyon Dam in 1964, and two hydro plants at Hoover Dam, which were built in 1936 and have a combined capacity of 2,078 MW.

In 2019, the Glen Canyon station generated nearly 4 million MWh of electricity. Combined, the two Hoover Dam stations generated roughly 3.4 million MWh, according to S&P Global.

The Bureau of Reclamation said in its report that during the 21-year period from 2000 to 2020, inflow to Lake Powell, which is a good measure of hydrologic conditions in the Colorado River Basin, was above average in only four of the past 19 years. It said the period 2000-2020 was the lowest 21-year period since the closure of Glen Canyon Dam in 1963.

The report said that under the current most probable forecast, the total water-year 2021 inflow to Lake Powell would be 5.72 million acre-feet, or roughly 53% of average.

If worst-case projections materialize, the water level at Lake Powell could drop below a critical level — measured as 3,525 feet above sea level — in early 2022, threatening the ability of Glen Canyon Dam to generate electricity.

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Source: https://pv-magazine-usa.com/2021/01/25/drought-conditions-could-impact-power-generation-in-the-west/

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Clorox achieves renewables goal for U.S., Canadian operations four years early

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The manufacturer reached its target with the help of a 70 MW virtual power purchase agreement with a Texas solar project.

The Clorox Co., whose products help consumers clean their homes and businesses, has turned to renewables to help clean the environment.

In an announcement, Clorox said it has reached its goal to power the company’s U.S. and Canadian operations using 100% renewable electricity. Part of the corporation’s environmental, social, and governance commitments, the target was achieved four years earlier than originally planned, thanks, in large part, to a solar contract.

In 2019, Clorox signed a 12-year virtual power purchase agreement (VPPA) to buy 70 MW annually from Enel Green Power’s Roadrunner solar project in Texas. Enel kicked off construction on the 497 MW Roadrunner facility in 2019 and completed the two-phase project in late 2020, making it one of the largest solar plants in the Lone Star State.

Moving forward, Clorox will maintain its 100% renewable electricity goal through the VPPA and other market purchases of renewable energy credits. Schneider Electric Energy & Sustainability Services advised the company on the deals.

Ed Huber, Clorox’s chief sustainability officer, said the manufacturer feels “a sense of urgency to address climate change” and recognizes “businesses play an important role in driving needed progress.”

Clorox also joined a coalition of other corporations–including Amazon, McDonalds, Pepsi Co., Walmart, and Facebook–calling on the Biden Administration to help pave the way for a zero-carbon U.S. power sector.

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Source: https://pv-magazine-usa.com/2021/01/25/clorox-achieves-renewables-goal-for-u-s-canadian-operations-four-years-early/

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