EnerVest Pushes Back Against WSJ “Bust” Story

Earlier this week MDN brought you the news, via a Wall Street Journal article, that EnerVest, a huge private equity firm with its fingers in many shale (and conventional) pies across the U.S., has gone bust (see EnerVest Goes Bust, from $2 Billion to $0 – Impact in M-U?). However, when you peel back the onion, the story of EnerVest and their investments in various plays is much more nuanced than the headline suggests. NGI’s ace reporter Carolyn Davis does a masterful job of deconstructing what is really going on. According to an extensive interview Carolyn had with EnerVest chief administrative officer, Ron Whitmire, the Journal got it wrong–at least with some of the key points made in their article. Whitmire said Wells Fargo and other banks are not looking to seize assets to satisfy their investment. He also explained the complicated structure of the company. It’s not just one company, EnerVest and their vast holdings are structured as more than a dozen companies. Although some of those companies are in trouble, the entire pie, according to Whitmire, is not in danger of bankruptcy. Whitmire sees two options at this point for the EnerVest mothership and its “peer” companies: sell, or recapitalize…

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