Houston E&P company delisted

The shares of EP Energy have been delisted by the New York Stock Exchange due abnormally low trading price levels.  Before the delisting, the shares were trading at 16 cents.

The company has its head office in downtown Houston. It has producing assets in the Eagle Ford, Northeastern Utah and the Permian Basin.

The company first received a delisting notice in early January following 30 days of trading below $1. Normally a company has six months following the notice to regain compliance. There had been no indications of a reverse stock split that would have achieved that, so I guess the NYSE decided to pull the plug early.

Apollo Global Management, a private equity group, bought EP Energy in February 2012. The company was the E&P arm of El Paso Corp that was being divested as part of its merger with Kinder Morgan. The purchase price was $7.2 billion, which included $4.3 billion of debt.

The company went public in 2014 at $20 a share ($704 million offering). In an April 2019 article, the Wall Street Journal stated that Apollo and its partners will lose about $2.5 billion on the investment, even after extracting about $750 million in fees and dividends from the company.

In its most recent quarterly filing, the company made an operating loss of $55 million and a net loss of $140 million. It had debt of $4.4 billion and negative equity of $736 million.

The company stated that it does not have enough liquidity to repay $182 million of unsecured notes due in 2020. It is evaluating alternatives.

SEC filing

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