Delphi Energy Completes Restructuring Transaction, Changes Management

Updated 11 months ago

Delphi Energy has implemented a restructuring transaction which was approved by the Court of Queen's Bench of Alberta on September 11, 2020. Debt has been reduced to $176.0 million with all outstanding shares, warrants, and options cancelled. Kiwetinohk Resources will own 25% of the outstanding shares for $22.9 million with warrants to purchase additional interests which will result in a 50%+1 stake in the company for $37.5 million. Delphi raised an additional $8.75 million from Luminus Energy, Concise Capital Management, and Stornoway Portfolio Management. ATB Financial will provide a $30 million senior secured revolving credit facility.

Delphi founder David Reid has retired as president and CEO and will continue in an advisory role. Timothy Schneider has been appointed president, CEO, and chairman, and P. Eric Gallie has been named CFO. Schneider was most recently the head of E&P investments at Luminus.

Timothy Schneider, Delphi President & CEO

The entities that will lead the resurgence of Alberta’s oil and gas sector will be the participants with purposeful, focused mandates committed to capital structures optimized for sustainability through the cycle, disciplined capital allocation, rigorous cost management and a willingness to improve operational efficiency via thoughtful implementation of innovative solutions.