HOUSTON, Jan. 4 /PRNewswire/ -- Express Energy Services, a Houston-based oilfield services company, emerged from Chapter 11 reorganization on December 31, 2009. The company's quick exit from Chapter 11 comes only 9 weeks after the company's filing.
Express filed for Chapter 11 bankruptcy protection on October 27, 2009, submitting a pre-negotiated reorganization plan that was overwhelmingly approved by its 75 senior secured creditors. The lenders agreed to exchange their $330 million in claims for Express equity and obtain ownership of the oilfield services company that is now essentially debt-free.
The Honorable Jeff Bohm of the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, confirmed the company's Joint Plan for Reorganization on December 7, 2009. The company postponed its emergence from Chapter 11 until the end of the calendar year for administrative and accounting purposes.
Express Energy Services will remain a privately owned company. The new owners do not plan to make any major changes in the company's operations or senior management.
"I want to thank all 1200 dedicated Express employees for their patience and perseverance during this restructuring process," said Darron Anderson, Chief Executive Officer of Express Energy Services. "I also want to thank our loyal customers and vendors who stood by us during the Chapter 11 process, and who can continue to count on Express and its employees to fulfill their business service needs in the years ahead."
"Revenues and cash flows exceeded budgets while our company was in Chapter 11," said Chief Financial Officer Jim Davis. "Express has ample liquidity and financial flexibility to continue to serve its customers and take advantage of growth opportunities in the future."
The country's economic recession and dramatic downturn in the energy sector sharply cut both demand and prices for oil and natural gas, causing a 50% drop in the U.S. drilling rig count in the past year. Reduced profits caused Express to file for Chapter 11 in order to restructure its long-term debt. During the past six months, the market has started to show signs of modest recovery: the U.S. land rig count has risen from 823 rigs in June to more than 1,130 rigs in December.
"With this trying period behind us, Express can look forward to a bright future, supported by a debt-free balance sheet, positive cash flow, and dedicated employees who are committed to serving our customers in a safe, professional manner," added Anderson.
More information about the court-approved reorganization plan is available online at: www.expressenergyinfo.com
About Express Energy Services
Express Energy Services began operations in October 2000 as an offshore rental support business to the coil tubing market. During the past nine years, Express has grown into a diversified oilfield service company serving oil and natural gas exploration and production companies from the Gulf Coast to the Rocky Mountains and every oil and gas basin in between.
Headquartered in Houston, Texas, Express has more than 1200 employees and more than 30 service locations in Arkansas, Colorado, Louisiana, Oklahoma, Pennsylvania, and Texas. The company provides "cradle to grave" wellsite services to support its customers' drilling, completions, work-overs, and wellbore abandonment operations.
For more information about Express Energy Services, visit our website at: www.eeslp.com
SOURCE Express Energy Services