Waldorf Production CEO: UK oil, gas firm “isn’t for sale”
(Bloomberg) – Oil and gas firm Waldorf Production isn’t for sale, according to Chief Executive Officer Erik Brodahl.
As part of a strategic review, Waldorf has “spoken to most of the independents in the UK about how we can get a better risk-adjusted return on our business,” he said during an investor update Thursday.
Waldorf hired Citigroup Inc. earlier this year to study a range of strategic options for its future, including a potential sale, Bloomberg reported in September. The company isn’t pursuing that course of action, Brodahl said.
Separately, he added that Waldorf hired a bank to consider whether to sell its Scott and Telford oil and gas assets in the UK, but it’s “too early to say” whether it will do so.
Privately held Waldorf established itself via the purchase of Endeavour Energy in 2019, followed by several other acquisitions. The company previously had to cancel deals in the Netherlands due to the impact of windfall taxes and uncertainty around decommissioning security requirements.
The firm has now paid half of a £69 million decommissioning payment, Chief Financial Officer Aaditya Chintalapati said. The sale of U.S. assets, organic cash flow and an undrawn credit facility of around with Shell Plc will take the company “comfortably through” the payment, Chintalapati said.
The company is working on “multiple options” to improve its liquidity position and will be able to meet its obligations for earnouts, contingent payments and bond amortization next year, he added.
Lead image: Scott Field offshore UK (Source: Waldorf Production)