C&J Energy Services

Summary

Investment Banker

Houston, TX

C&J Energy Services, Inc. (“C&J”) provides a full range of well construction, well completion, well support, and other complementary oilfield services to oil and gas E&P companies, primarily in North America, operating in all of the major O&G producing regions of the continental U.S. and Western Canada.

After the merger between C&J’s legacy business and the completion and production services business of Nabors, the company nearly tripled in the size of its enterprise-wide operations and added considerably more leverage. However, C&J experienced issues due to the decline in oil prices which significantly paired back drilling activity.

Key Challenges

Oil Industry Cyclical Downturn

Depressed Asset Values

Multi-Party Negotiations

Engagement Highlights

Following C&J’s bankruptcy filing in July 206, Carl Marks was retained to represent the Official Committee of Unsecured Creditors (the “UCC” or the “Committee”).
Engagement highlights include:
- Negotiated and analyzed the need for obtaining DIP financing; reached an agreement with the debtors and lenders to modify certain terms that previously prejudiced the Committee’s interest.
- Performed a valuation of C&J, analyzing its financial position and business plan, its competitors, industry research, and market outlook, to assist in negotiations of the proposed terms of a plan of reorganization.
- Successfully negotiated a recovery package for the Committee significantly above initial expectations. The GUC class received a cash payment plus 7-year warrants exercisable into 4% of newco equity.
- The GUC class expects par recovery (pending on claims received).

C&J Energy Services

Summary

Investment Banker

Key Challenges

Engagement Highlights

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