I just received paperwork from a hearing announcing EP energy has filed Chapter 11. Also stating they do not have to pay royalties. My question is: So what happens to the royalties owed and how do I find out what company will take it over? I have non participating royalties and dont always get notifications since I do not sign division orders for some reason.
There are some articles on the blog section of this site on bankruptcy if you want to try the search function in the upper right.
I am a royalty owner with EP. I didn’t get that information at all. Here is a link from their website.
Thank you Wade. Very helpful and much appreciated! Sally
Hi Sally – have you received any further information or clarification from EP on the status of your royalties? Were you able to cash your checks post bankruptcy filing?
I saw an article the other day saying that EP’s creditors are looking for an upfront $178 million payment… I’m guessing that’s not a very good sign but I’m no expert on the subject.
I just received a legal notice re: EP Energy Chapter 11- specifically about the procedures and assumptions of executory contracts and unexpired leases.
I have two producing wells in one section and am wondering about these scenarios:
- Does EP have the right to withhold payments while restructuring?
- Does EP have the right to cancel the unexpired lease?
- If so, are my minerals on the open market?
- If another lessee picks them up- are the terms of the current lease in effect?
Thanks in advance for any help, John
Hi John – have you had luck with the above? I’m after the same info as well but all I could find was this, and unfortunately the EP Energy answer is not particularly straightforward:
Have you received & been able to cash your checks since the Chapter 11 filing?
The most recent check was received and deposited (ACH) on 01-31-2020. All good.
Thanks for asking. Still hoping to get some clarification on my questions. If I get some from an outside source I will post…
The EP Energy Chapter 11 Plan got scrapped due to the price plunge. More likely to rework the plan than to convert the bankruptcy to a Chapter 7 (liquidation) but you never know in these times.