Stone Energy Exits Bankruptcy, Sale of M-U Assets to EQT Finalized

Stone Energy is an independent oil and natural gas exploration and production company (E&P) headquartered in Lafayette, Louisiana, drilling mainly in the Gulf of Mexico but also has (or rather had) a presence in the Marcellus/Utica Shale with 86,000 acres of leases. Stone quit actively drilling in the Marcellus in 2015, and filed for bankruptcy last October. As part of the bankruptcy filing, Stone signed a deal with Tug Hill to sell those 86,000 acres to Tug Hill for $350 million (see Stone Energy Enters Bankruptcy, Sells Marc/Utica Assets for $350M). The deal with Tug Hill was called a “stalking horse bid,” which meant Tug Hill would get the deal if no one else came along and bid higher. Someone did come along and bid higher–EQT (see EQT Wins Bankruptcy Auction for 86K Stone Energy M-U Acres, $527M). As of yesterday ownership for Stone’s 86K acres + wells was officially transferred to EQT. As of today, Stone is exiting bankruptcy. Now they have to pay Tug Hill a $10.8 million breakup fee…

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