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STACK Operator Files for Bankruptcy After Last-Ditch Drop in Activity

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Alta Mesa Resources Inc. and several of its affiliates (including Alta Mesa Holdings LP, Alta Mesa Holdings GP, LLC, OEM GP, LLC, Alta Mesa Finance Services Corp., Alta Mesa Services, LP and Oklahoma Energy Acquisitions, LLC) have filed for bankruptcy.

The Companies' midstream platform, Kingfisher Midstream LLC and its subsidiaries are not debtors and are not part of the Chapter 11 reorganization process.

The company has seen a complete drop off in well activity this year as it attempted to avoid filing chapter 11, as seen in the charts below:

Drilling Activity

Completion Activity

Jim Hackett, Executive Chairman of Alta Mesa Resources, commented "We believe that the Chapter 11 process provides the best pathway for Alta Mesa Resources and Alta Mesa Holdings to restructure their respective balance sheets and to regain the financial flexibility necessary to develop their large position in the STACK in a manner that will maximize value for all their stakeholders.

"Despite considerable progress in reducing costs and improving well results, the Companies continue to operate against a historically challenging commodity price environment and a capital market that is highly constrained for energy companies. Ultimately, these factors made bankruptcy protection the best option for the Companies as they continue production operations while negotiating with their lenders."

Leadership Changes

Alta Mesa Resources also announced that its Board of Directors has approved several leadership changes, in addition to prior personnel decisions that the Companies have made. These changes, which are effective immediately, will help provide a more optimal management structure for the future and reduce general and administrative costs.

• Jim Hackett, who recently held the title of Interim Chief Executive Officer, has resumed his former role as Executive Chairman and will remain involved with the Board and management team in the restructuring process.

• Mark Castiglione, who was previously Interim Executive Vice President Strategy and Corporate Development, has been promoted to Chief Executive Officer.

• Randy Limbacher, formerly Interim President, has accepted the role of Executive Vice President of Strategy, and will provide strategic counsel to the management team and Board.

• John Campbell, formerly Interim Chief Operating Officer, has become President and Chief Operating Officer.

• Kim Warnica will continue as Executive Vice President, General Counsel, Chief Compliance Officer and Secretary

• John Regan will remain Executive Vice President and Chief Financial Officer.