JPMorgan Sells Shale Driller It Picked Up Following Bankruptcy

JPMorgan Chase & Co. is selling Bighorn Permian Resources LLC, an oil and gas producer it took over in 2020 after the company failed to attract bidders during its bankruptcy, to Earthstone Energy Inc. for $860 million.

Formerly known as Sable Permian Resources, Bighorn was part of the late shale pioneer Aubrey McClendon’s empire. Amid the pandemic-driven collapse in oil prices two years ago, the producer went through a contentious bankruptcy process, where it faced a corporate governance fight with its creditors and struggled to find a buyer for its assets.

The deal is the latest in a ...