Pacific Rubiales Beaten Down And Oversold Offering Long-Term Value With Significant Positive Catalysts
Caiman Valores • 33 Comments
Caiman Valores • 33 Comments
Pacific Rubiales: A Deeply Under-Valued Colombian Diamond In The Rough
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Caiman Valores • 13 Comments
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Caiman Valores • 11 Comments
Thu, Jun. 30, 3:36 PM
- Colombia's Ecopetrol (EC -0.4%) says it will take over full operations at the Rubiales oil field tomorrow, in a move that will increase the state-run oil company's overall output by 60K bbl/day.
- The takeover of the 43% stake held previously by Pacific Exploration (OTCPK:PEGFF) will give EC complete control over the field that produces 135K bbl/day of crude.
- EC, which produced 736.6K bbl/day across all its fields during Q1, announced last year that it would not extend Pacific's contract to operate the field.
Wed, Apr. 27, 5:47 PM
- Pacific Exploration & Production (OTCPK:PEGFF) takes steps to implement its global restructuring by filing for protection from creditors in Canada under Canada’s Companies’ Creditors Arrangement Act after reaching a deal with key creditors on a plan to cut debt by ~$5B and improve its liquidity.
- Pacific Exploration says the Canadian court granted the company access to $500M in financing to fund its restructuring.
- The company also says it plans to file for protection under Chapter 15 of the U.S. bankruptcy code, which grants a foreign company protection from creditors looking to seize its assets in the country.
- Pacific Exploration reached a deal with debtholders including Catalyst Capital last week to convert almost all of its debt to equity.
Tue, Apr. 19, 2:52 PM
- Pacific Exploration & Production (OTCPK:PEGFF) says it has reached an agreement with Catalyst Capital on a restructuring plan that is expected to reduce Pacific’s debt by ~$5B.
- Under the terms of the deal, Catalyst and other creditors will provide $500M in debtor-in-possession financing secured against Pacific’s assets, with $250M provided by funding creditors to be converted into five-year convertible notes, while Catalyst’s $250M will be converted or exchanged for 16.8% of the shares in the reorganized company.
- Pacific’s $4.1B in unsecured debt, $1.2B in obligations on its credit facility and other unsecured claims by creditors will be wiped out and exchanged for a 58.2% stake in the reorganized company.
Thu, Apr. 14, 9:16 AM
- Pacific Exploration & Production (OTCPK:PEGFF) confirms that its board has agreed to negotiate a financial restructuring involving Catalyst Capital and the company's creditors.
- The offer from the Toronto-based P-E fund manager emerged as the front-runner among the several buyout offers to avoid possible bankruptcy court protection, but it has faced strong opposition from some Pacific shareholders who argued the deal favors management over investors.
- Pacific says its decision to back the Catalyst offer follows a recommendation from an independent committee of its board, and terms of the restructuring are still being completed; any deal will require approval by holders of two-thirds of Pacific’s debt.
Tue, Apr. 12, 3:22 PM
- Pacific Exploration and Production (OTCPK:PEGFF) is very close to recommending the offer from Catalyst Capital in its restructuring process, with the final decision coming within days, BNN reports.
- The move comes amid shareholder anger about the restructuring process and the potential for management to receive an equity stake while existing shareholders are wiped out; a group representing Pacific’s largest shareholder recently asked Colombian regulators to halt the proceedings.
- Gran Tierra Energy (NYSEMKT:GTE) reportedly was seeking information from Pacific in order to make a bid, but was rebuffed as Pacific viewed them as a competitor.
Mon, Apr. 11, 10:59 AM
- Pacific Exploration & Production (OTCPK:PEGFF) shareholders ask Colombia's markets regulator to block a possible buyout deal they say favors management over investors.
- Led by O'Hara Administration, which owns a 20% stake in Pacific, the shareholder group's formal complaint alleges that an offer by Catalyst Capital Group benefits Pacific's co-chairmen but could leave shareholders with nothing.
- Pacific's board reportedly postponed a meeting scheduled yesterday to decide among at least three proposals to reduce the company debt burden.
- Now read Bloomberg: Pacific E&P co-chairmen near takeover deal
Wed, Apr. 6, 3:39 PM
- Pacific Exploration & Production (OTCPK:PEGFF +3.4%) co-chairmen Serafino Iacono and Miguel de la Campa are close to clinching a deal to take over the company after outbidding rivals, Bloomberg reports.
- A bid by the co-chairmen is backed by Canadian P-E firm Catalyst Capital Group, which is expected to provide ~$500M in funds secured against the company’s assets, according to the report.
- Pacific failed to make bond interest payments in January and March, and has struggled after deals in recent years ballooned its debt before oil prices plunged.
- Now read Bloomberg: Pacifc E&P shareholders would lose all under chairmen's bid
Fri, Mar. 25, 5:45 PM
- Investment firm EIG Global Energy Partners says it is withdrawing its buyout offer for Pacific Exploration and Production (OTCPK:PEGFF)
- The tender offer for $4.1B worth of Pacific’s senior bonds expired yesterday, and EIG says all tendered bonds have been returned.
- EIG had offered the bondholders $0.16 on the dollar and had promised an overhaul of Pacific’s management and the sale of assets.
- Bondholders could agree to give Pacific more time to make a deal, but otherwise Pacific may be down to just a few days before bondholders can demand immediate payment or force the company to file for bankruptcy.
- Earlier this month, WSJ reported the EIG deal as one of six potential buyout offers the company was considering.
Wed, Mar. 23, 10:26 AM
- Pacific Exploration & Production (OTCPK:PEGFF -10.3%) shareholders would lose their entire investment under a debt-for-equity proposal that an independent committee of directors is set to approve this week, Bloomberg reports.
- A bid from co-chairmen Serafino Iacono and Miguel de la Campa to salvage the company is now the front-runner after Mexico’s Alfa dropped a counteroffer on Friday, according to the report, which adds that a bid by Tyrus Capital still stands.
- Under the proposal, Pacific’s chairmen reportedly would receive 10% of the new equity in return for securing $400M-$500M in funding, with creditors set to gain ~40% of the equity; Canadian P-E firm Catalyst Capital is expected to provide the funds secured against the company’s assets, and would get the remaining 50% of the new equity.
Mon, Mar. 21, 6:26 AM
Thu, Mar. 17, 8:59 AM
- Pacific Exploration & Production (OTCPK:PEGFF), Latin America's largest independent oil producer, is evaluating six buyout offers to avoid bankruptcy, WSJ reports.
- The board is expected to make a decision by the end of this week on the final offers, which include a management buyout and up to $500M in loans, according to the report.
- The most advanced offer reportedly would convert PEGFF’s debt into equity, giving the bondholders a majority stake in the company in return for reducing the payment load.
Fri, Feb. 19, 11:26 AM
- Pacific Exploration & Production (OTCPK:PEGFF -7.5%) says it reached a forbearance agreement with certain noteholders, giving it more time to achieve a restructuring of its balance sheet.
- The deal follows the company's decision last month not to make scheduled interest payments due on the notes and to seek restructuring alternatives.
- The agreement is with holders of ~40% of its $4.1B in 5.375% senior notes due 2019 and of its 5.625% senior notes due 2025.
Thu, Feb. 11, 8:54 AM
- Energy investment firm EIG extends its tender offer to Pacific Exploration & Production (OTCPK:PEGFF) debtholders to March 24 and reduces its price to $0.16 on the dollar.
- EIG and its Harbour Energy subsidiary also say they will limit the time-frame for payment to the holders of Pacific Exploration’s $4.1B in notes to 90 days, instead of at the end of a potentially long restructuring.
- EIG says the lower offer price reflects Pacific Exploration's deteriorating situation and more risk in paying bondholders earlier, before a full restructuring is completed.
Fri, Jan. 15, 3:58 PM
- Pacific Exploration & Production (OTCPK:PEGFF -41%) plunges to a nine-year low after saying it would delay debt payments to conserve cash.
- Pacific says it will not make $66M in interest payments due this month on its bonds, choosing to use a 30-day grace period in order to "assess strategic alternatives with respect to its capital structure.”
- Earlier this week, EIG Global Energy Partners announced a tender offer for Pacific’s bonds as part of a plan to buy control of the company and restructure its operations.
Dec. 17, 2015, 2:18 PM
- Shares in Pacific Exploration & Production (OTCPK:PEGFF +51.4%) soared on speculation of a potential takeover bid or asset sales, before trading in Toronto was halted this morning with gains of 68%.
- Cantofr Fitzgerald's head of emerging market strategy tells Bloomberg that he does not know if there is a knight in shinning armor coming, but "it looks like someone knows something and the rest of us are in the dark.”
- Shares are still down by more than half over the past year as Colombia’s no. 2 oil producer struggles with debt and the imminent loss of its largest oil field.
- UPDATE: Shares pared gains, closing +13.7% after saying the lenders under its $1B revolving credit agreement are forming a steering committee to negotiate the terms of a potential extension of covenants.
Oct. 27, 2015, 11:57 AM
- Ecopetrol (EC -3.2%) says it will take over operation of the Rubiales field, Colombia’s largest, from Pacific Exploration & Production (OTCPK:PEGFF -8.5%) at the end of their contract in mid-2016.
- EC had said in March that Pacific’s contract for the field would not be extended, but Pacific said at the time that it could make a new proposal to keep running the prospect; the field provides Pacific with more than a third of its production.
- Pacific, which was previously named Pacific Rubiales, changed its name earlier this year to reflect a broader Latin America focus.
Pacific Rubiales is a public company listed on the Toronto and Colombian stock exchanges. The Company is the largest independent oil and gas exploration and production company in Colombia. Pacific Rubiales owns 100% of Pacific Stratus and Meta Petroleum Limited, two Colombian oil & gas operators... More
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Industry: Oil & Gas Drilling & Exploration
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