Philip Riley is a Managing Director of Bluescape Energy Partners and a Director of Parallel Resource Partners. Riley has over 16 years of industry experience, including direct involvement in the E&P industry during three separate down cycles.
In his current role, Riley is responsible for formulating investment strategies and sourcing investment opportunities, with a primary focus on distressed oil and gas situations. During the past 4 years at Bluescape/Parallel he has led deal teams in investing over $250 million of equity in the North American E&P business. Most recently he worked alongside the management team of a portfolio company to acquire assets out of bankruptcy via a Chapter 11 Section 363 sale. The assets were acquired at an 83% discount to the face value of debt, and the investment could have potentially been in-the-money at closing by 60% or more. Additionally, Riley serves on the board of directors and/or works closely with Parallel's portfolio companies to oversee strategy, evaluate M&A opportunities, hedging, and financing practices, etc.
Prior to Bluescape, Riley served as Senior Vice President at Imperial Capital, Vice President at Lazard, and as Analyst at Petrie Parkman in Houston. In such roles, Riley advised companies, private equity sponsors, hedge funds, lenders, and other creditors on over 45 consummated transactions in excess of $135 billion of value or restructured liabilities, with a focus on complex distressed and restructuring situations. Of this total, over 50% of transactions and > $75 billion of value of transactions involved oil & gas or other energy companies. In addition to customary analysis such as valuation and transaction structuring, Riley’s advice centered around (i) analyzing legacy liabilities (e.g., plugging & abandonment, take-or-pay contracts, pension & OPEB) and designing solutions to minimize investor’s future exposure to such liabilities; and (ii) structuring change-of-control transactions to preserve tax attributes and preserve value for investors.
During approximately 10 years of restructuring advisory experience, Riley was engaged by investors to advise on multiple distress-for-control transactions, including the full cycle from initial evaluation of opportunities, to the identification and purchase of fulcrum securities, through negotiation and execution of change of control transactions. Notable transactions/engagements included: (i) Advised $100 billion distressed investment fund on multiple assignments, including a take-private distressed acquisition pursuant to a contested Ch. 11 plan of reorganization in which $375 million of liabilities were restructured via an equitization of notes and a $100 million backstopped rights offering and structured a competing DIP proposal which led to dramatic improvement in final DIP term; (ii) Advised a market leading company on the distressed acquisition of a close competitor through the debt and a contested Ch. 11 plan of reorganization process; acquired a control position in the fulcrum debt for the client at a significant discount to face value and structured DIP financing to maintain tight control of the restructuring and acquisition process; (iii) Advised a $500mm private equity fund on the design and implementation of a creative two-step restructuring, which included a new money defensive investment (2nd lien) by the existing sponsor into an underwater investment ahead of junior debt, followed by a deleveraging private exchange offer; sponsor maintained 90% equity ownership and realized significant value creation at close.
Riley earned a bachelor in business administration from The University of Texas at Austin, with majors in the Business Honors Program and Finance.