Sable Permian Resources Merging with American Energy-Permian Upon Emergence from Chapter 11 10/18/2019

Sable Permian Resources has entered into a deal to merge its assets with American Energy - Permian Basin after American emerges from its current chapter 11 case.  Sable is the parent entity of American Energy - Permian Basin and operates on its behalf.  

Chapter 11 Case

Under the recapitalization efforts, American Energy repurchased $2.1 billion in 13% Senior Secured First Lien Notes due 2020, 8% Senior Secured Second Lien Notes due 2020, Floating Rate Senior Notes due 2019, 7.125% Senior Notes due 2020 and 7.375% Senior Notes due 2021.  They also issued $708 million in new 12% Senior Notes due 2024.  Their total debt load was reduced by $1.4 billion with four-year debt maturities dropping from $2.1 billion to just $36 million.  

As part of the acquisition, the merged companies' credit facilities have been repaid and replaced with an upsized $1.0 billion facility that has an initial borrowing base of $750 million. 

Below is Sable's current Permian acreage.

The FERC Has Issued Certificate Approvals to the Lockridge Extension Pipeline and the Southeastern Trail Project 10/17/2019

In the October 2019 FERC meeting, the agency conditionally granted certificates of public convenience and necessity to NGPL's Lockridge Extension Pipeline and Transco's Southeastern Trail Project.

Lockridge Project

NGPL's Lockridge Extension Pipeline is a 16.84-mile, 30-inch pipe designed to extend flows in West Texas while supporting another 500,000 Dth/d in firm transport.  The system will interconnect with Trans-Pecos Pipeline at the Waha Hub.

Southeastern Trail Project

Transco's Southeastern Trail Project will consist of an expansion in Virginia, South Carolina, Georgia, and Louisiana and the abandonment of certain compressiont facilities.  In sum, the project will add 296,375 Dth/d to the Transco mainline for five shippers.