• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 49 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 days Does Toyota Know Something That We Don’t?
  • 3 days America should go after China but it should be done in a wise way.
  • 9 days World could get rid of Putin and Russia but nobody is bold enough
  • 11 days China is using Chinese Names of Cities on their Border with Russia.
  • 23 mins "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 14 hours Even Shell Agrees with Climate Change!
  • 11 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 2 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 12 days Putin and Xi Bet on the Global South
  • 12 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"

North American Oil Patch Bankruptcies Dwindle This Year

The pace of bankruptcy filings by North American exploration and production companies has slowed down dramatically so far this year compared to last year, according to the latest Oil Patch Bankruptcy Monitor by law firm Haynes & Boone.  

With data updated as of July 31, 2017, fourteen producers had filed for bankruptcy in 2017, representing some US$5.1 billion in cumulative secured and unsecured debt, Haynes & Boone has estimated.

This compares to 45 E&P companies filing for bankruptcy in the period January-May 2016 alone, according to the monitor.

Referring to this year’s figures, the law firm said in its report:

"E&P bankruptcy filings have continued to dwindle over the summer. While five E&P companies with cumulative debt of $77 million filed for bankruptcy in June, there were no E&P company bankruptcy filings during the months of May or July.”

Since the beginning of 2015, a total of 128 North American oil and gas producers that have filed for bankruptcy, including Chapter 7, Chapter 11, Chapter 15, and Canadian cases. All those bankruptcies involve around US$79.3 billion in cumulative secured and unsecured debt, according to Haynes & Boone.

“Many companies that needed to restructure either have gone through bankruptcy or reached out-of-court settlements with creditors,” Ian Peck, a partner at Haynes & Boone, said, as quoted by the Houston Chronicle.

However, the lower-for-longer prices may lead to an uptick in bankruptcy filings in the near term, according to Peck.

Related: U.S. Oil Sanctions Could Push Venezuela To The Brink

“Despite the industry’s new stability at this price point, a prolonged pricing trough may ultimately be too difficult for some players to bear,” he said.

A number of U.S. drillers expect to continue raising production this year, but some are adjusting spending to the expected cash flows in the current oil price environment, after prices failed to rise as much as analysts and investors had expected a few months ago.   

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News