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Company Launches Voluntary, Preconfigured Chapter 11 Process That Will Eliminate Over $ 250 Million In Funded Debt Obligations

The Chapter 11 process should be completed in approximately 60 days

All operations should continue as usual; employees, vendors, royalty owners and other commercial creditors continue to be paid in full in the normal course of business

Enter Chapter 11 process with at least $ 45 million in DIP funding committed

DENVER, March 09, 2021 (GLOBE NEWSWIRE) – Sundance Energy Inc. (NASDAQ: SNDE) and its affiliates (“Sundance” or the “Company”), an independent onshore oil and gas company focused on developing large areas of reproducible resources in North America, today announced that it has filed an application Chapter 11 Voluntary Protection Fund in the US Bankruptcy Court for the Southern District of Texas to effect a transaction that will strengthen the company’s balance sheet and better position Sundance for lasting future success. All operations will continue as usual without interruption and the Chapter 11 process should be completed in approximately 60 days.

On March 9, 2021, Sundance entered into a Restructuring Support Agreement (the “RSA”) with the Administrative Agent under its Revolving Reserve Credit Facility (the “RBL Facility”), the holders of 100% of the unpaid principal amount of the revolving loans under the RBL facility, the administrative agent under the pre-term loan (the “Term Loan Facility”) and holders of 100% of the unpaid principal amount term loans under the Term Loan Facility, whereby the parties have agreed to support the Company’s Prepackaged Reorganization Plan (the “Prepackaged Plan”) under Chapter 11 of the US Bankruptcy Code. The prepackaged plan includes a debt-for-equity swap that will wipe more than $ 250 million of funded debt from the company’s balance sheet. Implementing the prepackaged plan will strengthen Sundance’s financial structure, allowing it to focus on its core competencies without having to pay significant levels of debt.

With the strong support of its lenders, the implementation of the Pre-Packaged Plan will allow the Company to quickly and efficiently recapitalize its balance sheet and to reorganize as a private entity without significant impact on the majority of its creditors. Under the prepackaged plan, which remains subject to bankruptcy and consumer court approval, existing holdings would be canceled on the effective date and holders of existing holdings would not receive any consideration or distribution to the title of these participations.

The Company has also secured commitments from some of its term loan lenders for at least $ 45 million in debtor-in-owner financing (“DIP”) which, along with normal operating cash flows and consensual use cash collateral will finance normal operations. course operations and reorganization costs. Upon emergence, the Company’s recapitalized balance sheet will include (i) $ 137.5 million of funded debt comprising a senior secured revolving reserve credit facility, a second senior secured term loan and, if necessary, a third senior secured term loan, in each case provided by existing lenders of the RBL Facility and (ii) new ordinary participations issued in exchange for DIP financing receivables and term loan receivables. , subject to dilution by new ordinary participations granted within the framework of a new management incentive plan.

“Sundance has faced many challenges in recent years, resulting in declining cash flow and liquidity that has only been exacerbated by the unprecedented COVID-19 pandemic and the volatility of crude oil prices and natural gas in the market, ”said Eric McCrady, head of Sundance. Executive officer. “As a result, we are taking decisive action to meet these challenges and deleverage our balance sheet in order to best position our business for sustainable future success. We are grateful for the support of our lenders throughout this process and anticipate that the consensus already reached will simplify our path through Chapter 11 and allow us to come out with a stronger financial structure.

Sundance plans to continue operations uninterrupted throughout the Chapter 11 process. The company has filed customary petitions in bankruptcy court seeking authorization from Sundance to continue operations in the normal course, including, but without limitation, the payment of employees and the continuation of existing employee benefit programs, the payment of royalty owners and suppliers in the normal course, and the fulfillment of commitments to customers, including crude buyers. The Company has also filed a customary request to implement share trading procedures in order to preserve the value of the Company’s tax attributes. Such motions are typical of the Chapter 11 process and Sundance anticipates that they will be heard and approved in the early days of Chapter 11 business. In addition, the RSA and the Pre-Packaged Plan provide that unsecured commercial creditors will be paid in full. as part of the Pre-Packed Plan.

For more information on the Company’s Chapter 11 case, please visit https://cases.primeclerk.com/sundanceenergy or contact Prime Clerk, the Company’s Notification and Complaints Officer, at (877) 470-4340 for US / Canada calls or (347) 919-5764 for international calls, or by sending an email [email protected].

Sundance is represented in this matter by Latham & Watkins LLP, Hunton Andrews Kurth LLP, Miller Buckfire & Co., LLC and FTI Consulting Inc.

About Sundance Energy Inc.

Sundance Energy Inc. is an independent energy exploration and production company located in Denver, Colorado. The Company is focused on the acquisition and development of significant areas of reproducible oil and gas resources in North America. Current activities are concentrated in the Eagle Ford. A full overview of the company is available on the Sundance website at www.sundanceenergy.net.

Caution Regarding Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “draft”, “believe”, “estimate”, “” expect ”,“ anticipate ”,“ intend to ”,“ consider ”,“ anticipate ”,“ will ”,“ could ”,“ plan ”and similar expressions which are intended to identify forward-looking statements, which are generally not historic in nature. These forward-looking statements are based on management’s current expectations and beliefs regarding future developments and their potential effect on Sundance. Although management believes that these forward-looking statements are reasonable as they are made, there can be no assurance that future developments affecting Sundance will be as anticipated. Sundance’s forward-looking statements involve significant risks and uncertainties (some of which are beyond Sundance’s control) and assumptions that could cause actual results to differ materially from historical Sundance experience and current expectations or projections. These include, without limitation, the risks or uncertainties associated with our ability to complete the transactions associated with the Company’s current bankruptcy proceeding, our ability to obtain timely confirmation of a reorganization plan passed in the Company’s current bankruptcy court the proceedings and general economic and business conditions, including the continued impact of the COVID-19 pandemic. You are cautioned not to place undue reliance on any forward-looking statements contained in this press release, which speak only as of the date of this press release. Forward-looking statements are also affected by the risk factors described in Sundance’s 10-K filing for the year ended December 31, 2019, as may be amended, and those set forth from time to time in other documents. filed with the SEC. Sundance assumes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

For more information please contact:

Cathy Anderson
Executive Vice President, Chief Financial Officer and Treasurer
Phone. : (303) 407-0471
[email protected]

For media inquiries, please contact:

FTI Council
Angelo Thalassinos / Sarah Rosselet
[email protected]