Gas producer Samson Resources to break loan covenants

KKR-owned Samson Resources — one of the country’s biggest privately held natural gas producers — is expected within weeks to break its loan covenants, three sources close to the situation told The Post.

Samson — hit hard by falling oil prices — last month hired restructuring advisers to help get it out from under a heavy debt load.

The energy company is in talks with a JPMorgan-led group that holds a $1 billion revolving line of credit.

“The question is: Will JPMorgan give them a break?” a source said.

Last year, Samson broke the covenant in the same revolving line of credit, and JPMorgan gave the energy company a waiver while lowering the line of credit to $1 billion — from $1.8 billion — the source said.

“They will have a fully drawn revolver in 2015,” the source noted.

Samson needs to keep its consolidated total first lien debt to EBITDA ratio to not more than 1.5 to 1.0 at the end of the quarter, according to public filings.

Henry Kravis has much riding on Samson.

His firm led the biggest buyout in history — the $44 billion 2007 buyout of Energy Future Holdings — and EFH last year filed for bankruptcy.

KKR and the other equity sponsors could see their positions largely wiped out.

Kravis in 2011 doubled down on the energy space, leading the $7.2 billion buyout of Samson, and now it is trying to avoid a similar fate.

A Samson spokesman declined comment.