Houston-based Alta Mesa Resources Inc. has filed for Chapter 11 bankruptcy and revamped its leadership team, the company announced Sept. 12.
The pure play-STACK operator has been struggling for some time, announcing in May that Chapter 11 bankruptcy was a possibility. In a statement announcing the move, Alta Mesa said it had made "considerable progress" in reducing costs and improving well results but bankruptcy protection became unavoidable.
"[Alta Mesa and Alta Mesa Holdings LP] continue to operate against a historically challenging commodity price environment and a capital market that is highly constrained for energy companies. Ultimately, these factors made bankruptcy protection the best option for the companies as they continue production operations while negotiating with their lenders," Alta Mesa said. "This Chapter 11 restructuring process will allow AMR to reorganize its capital structure, which will be a critical step towards best positioning our company financially and operationally in the future."
Executive Chairman Jim Hackett said the Chapter 11 process would be the "best pathway" for Alta Mesa Resources and Alta Mesa Holdings to restructure their balance sheets and regain much-needed financial flexibility.
The bankruptcy filing was followed by a significant reshuffling of the company's executive group. Hackett, who had been serving as the company's interim CEO, returned to his former post as executive chairman while Interim Executive Vice President for Strategy Mark Castiglione was promoted to CEO. Former interim President Randy Limbacher will take over as executive vice president, while former Interim COO John Campbell will become president and COO.
"When I assumed the Interim Chief Executive Officer role, I said that we would endeavor to find the right individual to lead the organization as it continues to progress forward with the development of our asset base. Mark Castiglione has demonstrated the skills required to lead this organization into the future, and he has the full support of the Board," Hackett said. "Mark has both a financial and technical background and has served in engineering and business development roles in several large- and medium-sized public and private independent oil and gas companies."
