Dore Law - September 2019

Dore Law - September 2019

THE D or É R eport

D ore L aw G roup . net

SEPTEMBER 2019

HAVE YOU TRIED OUR NEW BANKRUPTCY TRACKER? Meet Bankruptcy Tracker 2019

Doré Rothberg McKay has officially launched a new tool we trust will be useful to your company — the Bankruptcy Tracker 2019. We’ve published information about the tracker in our newsletter since July (and we’ll continue to run it through the end of the year), but we wanted to take some extra time this month to fill you in on the tool’s full scope. At a glance (see the summary table inside our newsletter), our tracker lets you see the number of oilfield industry bankruptcies that have been filed in 2019, each of which are events that could affect your day-to-day credit and collection decisions. There has been a rise in oilfield bankruptcies since the year began, due to various contributing factors, including: • Low and fluctuating oil prices, which have caused many loans secured by reserves to become under-secured, triggering penalty or default loan terms • Depressed commodity prices in general, which have led E&P companies to reduce their exploration and development budgets • Competition for work that, with reduced drilling, has squeezed margins for most oilfield services companies • The reduction in reserve value that lenders are using as collateral, which often times drives the oilfield borrower into default pursuant to the loan documents

• Reluctance on the part of companies to “upgrade” their budgets, increase capacity, or borrow/invest more funds until the industry and product prices have stabilized This volume of oilfield industry bankruptcy filings doesn’t quite amount to the anarchy that took place in late 2014, but the increasing number of bankruptcies filed in 2019 suggests a shakeout of weaker or over- leveraged companies is still taking place. Just like lenders, credit departments will be more careful in making credit decisions and more vigorous in enforcing collections considering the trend.

Developing and sharing tools like the Bankruptcy Tracker 2019 are our way of giving back to our clients to help them stay sharp. A snapshot of select cases is provided within this month’s Doré Report , but for a complete and updated version of the Bankruptcy Tracker 2019 , contact Doré Rothberg McKay today. Clients like you have already put the Bankruptcy Tracker 2019 to work by comparing their customer lists with the list of bankruptcies, giving feedback to management on the number of collection problems avoided, and using it to support their credit and collection policies. We also offer a tool that will give you both IMMEDIATE notice of industry bankruptcies and information on most of the creditors involved within a day of a new filing: the Bankruptcy Alert . Each alert comes in the form of a detailed email that breaks down information we’ve extracted from the many filings that begin most company bankruptcies. If you are not already receiving this valuable email, contact us today at 281.829.1555 to be added to the list!

“We consider it our duty to keep an eye on industry trends and inform our clients of what we see.”

As the largest law firm in the Houston Energy Corridor, we at Doré Rothberg McKay feel we’re a part of the industry. We represent the most oilfield services companies of any law firm in Texas and file more mineral liens than any firm in the U.S., and we consider it our duty to keep an eye on industry trends and inform our clients of what we see. Our firm has represented service companies in nearly all of the complex oil and gas bankruptcies in the last several years and become the preeminent law firm in preferential transfer defense efforts.

-Zachary McKay

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RECOGNITION, FLEXIBILITY, AND PURPOSE 3 Tips for Attracting Millennial Employees

You might have heard people call millennials lazy, entitled, and afraid of long-term commitments, but that trend is starting to shift. Today, businesses can’t afford to write off millennials because they actually make up a major percentage of the workforce. According to the Pew Research Center, there were 56 million millennials either working or looking for work in 2017, making up 35% of the labor force. When so much of the country’s available labor is part of one demographic, you must ask yourself this question: How do I get millennials to work for me? CATER TO THE INDIVIDUAL Millennials don’t want to be just another cog in the machine. They want to work somewhere that values their unique skills and lets them use those skills effectively. When seeking millennial talent for your company, highly specific job listings will attract exceptional employees. Once they’re on board, be sure to nurture their skill set. Give them a chance to grow with your company, and they’ll be sure to stick around. DITCH THE 9-TO-5 Standard Offering more flexible work hours is a start, but if you really want to attract millennials, then your entire work environment should embrace modernity. Have

the latest tech and tools for day- to-day operations, offer frequent opportunities for promotions and raises, avoid micromanagement, and give your young employees room to learn and grow. CREATE A SENSE OF PURPOSE More than anything, millennials are looking for some level

of personal fulfillment — not just a paycheck. Create a brand story and work culture that expresses a greater purpose for prospective employees to get behind. Set high standards for the culture you want to create and maintain those standards. If you do this right, the talent you’re looking for will come to you. Just because millennials want more flexible work schedules and individual recognition doesn’t mean they aren’t willing to work hard. In fact, the opposite is true. By adapting your company culture to suit their lifestyle preferences, you can make sure your younger employees take an interest in your business and stick around.

OIL & GAS BANKRUPTCY TRACKER 2019

(limited to Debtor Liabilities > $10MM)

FILING DATE DEBTOR NAME

COURT Nevada

CHAPTER REPORTED LIABILITIES

2/3/2019 2/4/2019 2/14/2019 2/14/2019 2/28/2019 3/31/2019 4/1/2019 4/14/2019 4/15/2019 4/19/2019 5/8/2019 5/8/2019 5/10/2019 5/10/2019 5/15/2019 5/16/2019 5/22/2019 5/22/2019 5/22/2019 5/24/2019 5/28/2019 6/3/2019 6/3/2019 6/3/2019 6/18/2019 6/24/2019 7/1/2019 7/1/2019 7/11/2019 7/11/2019 7/16/2019 7/21/2019 7/16/2019 7/31/2019

Dc Solar Solutions

11 11 11 11 11 11 11 11 7 7 7 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11

$1 billion to $10 billion $500 million to $1 billion $50 million to $100 million $50 million to $100 million $100 million to $500 million $1 billion to $10 billion $500 million to $1 billion $1 billion to $10 billion $10 million to $50 million $10 million to $50 million $1 billion to $10 billion $500 million to $1 billion $10 million to $50 million $100 million to $500 million $10 million to $50 million $100 million to $500 million Originally filed in Germany $50 million to $100 million $500 million to $1 billion $10 million to $50 million $50 million to $100 million $100 million to $500 million $1 billion to $10 billion $50 million to $100 million Involuntary Involuntary

Arsenal Energy Holdings

Delaware Delaware Delaware

BBPC LLC

1515-GEEnergy Holding Weatherly Oil & Gas

Texas-Southern Texas-Southern

Vanguard/Eagle Rock/Escambia Southcross/FL Rich Gas/T2 EF

Delaware

Jones Energy/Nosley

Texas-Southern

Integrity Directional Services

Oklahoma-Western

Fram Americas

Colorado

Boulder Energy Solutions

Oklahoma-Western

Triangle Petroleum Cordero Oil and Gas

Delaware Delaware

Falcon V

Louisiana-Middle

EdgeMarc/EM Energy

Delaware Delaware Delaware

Hilltop Energy

Elk Petroleum/Resolute

NCI New Capital

Florida-Southern

15

PWR Oil & Gas General Partners

Delaware

White Star Petroleum White Star Petroleum International Energy

Oklahoma-Western

Delaware

Oklahoma-Northern Oklahoma-Northern

AusTex Oil O’Benco IV

Texas-Eastern Texas-Southern

Legacy Reserves/Pinnacle Gas/ Dew Gathering

HDR Holding/Schramm Weatherford International

Delaware

Texas-Southern

11 7

$1 billion to $10 billion

Apex Energy

Montana

Involuntary

Silver Creek Services Drying Facility Assets

Pennsylvania-Western

$10 million to $50 million $100 million to $500 million $10 million to $50 million

Texas-Southern

Remanant Oil

Delaware Delaware

PES/ Philadelphia Energy Solutions

$1 billion to $10 billion

HVI Cat Canyon Matra Petroleum

New York-Southern

$100 million to $500 million $50 million to $100 million

Texas-Southern

A full list of 2019 oil & gas bankruptcies, including expanded information, is available upon request to the Doré Law Group P.C. The full list has 173 business entities as of Aug. 6, 2019.

TOO MANY ‘TO-DOS’ The Art of Managing Your To-Do List To use the matrix, first use your best judgment to divide your tasks into the four quadrants. Then, take action on each quadrant as follows:

Do you have too many tasks on your to-do list? If you do, how do you decide what to do first and what to put off until later? For most of us, tasks that seem urgent move to the front of the line. If something demands to be done now, we get it done right away. However, deciding what’s urgent and what’s simply important can be a tricky task in itself. Fortunately, experts have already tackled that problem and given us some useful suggestions. In his bestseller “The 7 Habits of Highly Effective People,” Stephen Covey explains a method called the Eisenhower Decision Principle, which can help people make distinctions between what’s important and what’s urgent.

• Quadrant 1 (Important and Urgent) = Do first!

• Quadrant 2 (Important but Not Urgent) = Plan and do later

The principal is based on a

• Quadrant 3 (Not Important but Urgent) = Delegate the task

URGENT EISENHOWER DECISION MATRIX NOT URGENT

quote by former U.S. WWII Allied Commander and President Dwight D. Eisenhower, who said, “What is important is seldom urgent, and what is urgent is seldom important.” Here’s what the matrix looks like:

• Quadrant 4 (Not Important and Not Urgent) = Eliminate the task

You will improve your performance the most by resolving to do the “Important and Urgent” tasks first, and you’ll save the most time by delegating the tasks that are “Urgent but Not Important” to someone else who will likely see the task as very important. It’s a win-win. Of course, life and work are never quite so simple. New tasks are constantly added, and the priority of old tasks may change. Nevertheless, this model could be a useful tool to help you organize the many tasks on your to-do list.

Quadrant 1

Quadrant 2 Important Not Urgent

Important Urgent

Quadrant 3 Not Important Urgent

Quadrant 4 Not Important Not Urgent

word search

CLASSIC APPLE CRISP

Inspired by Food Network

INGREDIENTS

Filling: • 5 lbs Granny Smith apples, peeled, cored, and chopped • 1/4 cup pecans, finely chopped • 3 tbsp all-purpose flour

Topping: • 3/4 cup all-purpose flour • 1/3 cup brown sugar • 1/4 tsp ground cinnamon • 1/4 tsp salt • 6 tbsp chilled butter, cut into pieces • 1/4 cup pecans, coarsely chopped

• 2 tbsp maple syrup • 1 tbsp lemon juice

INSTRUCTIONS

1. Heat oven to 350 F. 2. In a mixing bowl, mix all filling ingredients together. Transfer to individual serving ramekins. 3. In a different mixing bowl, combine flour, sugar, cinnamon, and salt for the topping. Mix in butter until it forms lumps roughly the size of a pea, then stir in pecans. Sprinkle topping over filling. 4. Bake for 35–40 minutes, let stand for 10 minutes, and serve.

AUTUMN APPLE

FOOTBALL QUARTERBACK TOUCHDOWN HOMECOMING

HARVEST CIDER LEAVES SWEATER

SEPTEMBER LABORDAY

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1 2 3 4

Have You Tried Our New Bankruptcy Tracker?

How to Attract Millennials to Your Business

Oil & Gas Bankruptcy Tracker 2019

How to Save Your To-Do List

Classic Apple Crisp

A Reading List for Real Success

BUILD A MILLIONAIRE’S LIBRARY BOOK RECOMMENDATIONS FROM THE ULTRA SUCCESSFUL

What does every successful person have in common? They read. Avid reading is a key characteristic of the ultra successful because, through great ideas, you can learn how to achieve your full potential. If you want to be more successful in business and in life, you should definitely add these great books to your reading list. ‘BUSINESS ADVENTURES: TWELVE CLASSIC TALES FROM THE WORLD OF WALL STREET’ BY JOHN BROOKS Who read it? Bill Gates, founder of Microsoft Famously loaned to Bill Gates by Warren Buffett himself, “Business Adventures” was written and originally published shortly after the stock market crash of 1962. In this book, John Brooks recorded the successes and failures of 12 major companies of the era, including Ford, Xerox, and General Electric.

experience the world we live in. Each letter is a valuable reminder that we should never underestimate our own artistic spirit.

‘IT’S NOT ABOUT THE COFFEE: LEADERSHIP PRINCIPLES FROM A LIFE AT STARBUCKS’ BY HOWARD BEHAR Who read it? Katrina Lake, founder and CEO of Stitch Fix Starbucks is known for its quick coffee and seasonally controversial cups, but that’s not what turned the company into a world- conquering success. In “It’s Not About the Coffee,” Howard Behar highlights the importance of company culture and the role business leaders play in helping their team members reach their full potential. ‘CREATIVITY, INC.: OVERCOMING THE UNSEEN FORCES THAT STAND IN THE WAY OF TRUE INSPIRATION’ BY ED CATMULL WITH AMY WALLACE Who read it? Mark Zuckerberg, co-founder and CEO of Facebook Ed Catmull, co-founder of Pixar, is responsible for some of the most successful animated movies in the history of cinema. “Creativity, Inc.” explores the creative process behind such films and how this process can be replicated in any industry. Forbes has suggested that Catmull’s book “just might be the best business book ever written.”

‘LETTERS TO A YOUNG POET’ BY RAINER MARIA RILKE Who read it? Jen Rubio, co-founder and president of Away

From 1903–1908, renowned German poet Rainer Maria Rilke wrote letters to a young, aspiring poet. These candid thoughts from one of the greatest artistic minds offer insights on life, love, and how to fully

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