Rockdale Marcellus Files for Chapter 11 Protection

Northeast Pennsylvania producer was formed in 2017 after the purchase of Shell-operated properties.

A past Rockdale drilling location in NE Pennsylvania.
SOURCE: Rockdale

Rockdale Marcellus Holdings LLC and Rockdale Marcellus LLC filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code in the Western District of Pennsylvania on 21 September. The entities are seeking to have their cases jointly administered for procedural purposes.

Rockdale Marcellus LLC was formed with the acquisition of Shell’s operated Marcellus properties in Tioga, Lycoming, and Bradford counties in Pennsylvania in 2017. In 2020, the company purchased EOG Resources’ Marcellus holdings. Rockdale Marcellus owns and operates roughly 66 producing wells on a contiguous acreage position of 48,000 gross acres with 100% working interest. Total company production was 110 MMcf/d as of March 2021.

The company touted more than 100 future drilling locations identified in the highly productive Marcellus dry-gas shale formation.

According to court documents, Rockdale owes money to more than 1,000 creditors and has assets worth between $100 million and $500 million. The company is said to owe a similar range to creditors. Rockdale Marcellus is planning to sell “substantially all” of its assets.

Rockdale is seeking the court’s permission to conduct an auction of its assets in mid-December.

Rockdale’s biggest creditor is White Oak Global Advisors, an investment firm that backed the original purchase of the Shell assets. Rockdale owes White Oak $50.5 million. The next largest creditor owed is Aqua-ETC Water Solutions, a subsidiary of Energy Transfer Partners, owed $2 million.