• 7 minutes Get First Access To The Oilprice App!
  • 11 minutes Japanese Refiners Load First Iran Oil Cargo Since U.S. Sanctions
  • 13 minutes Oil prices forecast
  • 17 minutes Renewables in US Set for Fast Growth
  • 3 hours Chinese FDI in U.S. Drops 90%: America's Clueless Tech Entrepreneurs
  • 8 hours Socialists want to exorcise the O&G demon by 2030
  • 6 hours Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 18 hours Cheermongering about O&G in 2019
  • 39 mins Russian Message: Oil Price War With U.S. Would Be Too Costly
  • 1 day Duterte's New Madness: Philippine Senators Oppose President's Push To Lower Criminal Age To 9
  • 2 days Is Natural Gas Renewable? I say yes it is.
  • 1 day North Sea Rocks Could Store Months Of Renewable Energy
  • 10 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 2 hours Oil CEOs See Market Rebalancing as Outlook Blurred by China Risk
  • 2 days Making Fun of EV Owners: ICE-ing Trend?
  • 2 days Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 23 hours Oceans "Under Fire" Of Plastic Trash
Israel Aims To Become An Energy Export Hub

Israel Aims To Become An Energy Export Hub

A new sub-sea natural gas…

Global Intelligence Report - 16th January 2019

Global Intelligence Report - 16th January 2019

Plagued by U.S. oil sanctions,…

These Two U.S. Drillers Just Filed For Bankruptcy

Two more oil companies have filed for Chapter 11 bankruptcy protection, as crude oil prices hover just above $45 per barrel and financial woes take their toll.

Oklahoma-based Midstates Petroleum Company and Texas based Ultra Petroleum have now filed for bankruptcy, citing combined debts of more than US$5.8 billion blamed on a long run of low commodity prices that have led to irreparable financial damage.

Last year, Midstates Petroleum recorded a net loss of $1.8 billion, compared to net income of $116.92 million a year ago. The company operates in Texas, Louisiana and Oklahoma and produced 12 million barrels of oil equivalent in 2015. It owns assets worth around $680 million. According to the company, it reached a plan support agreement with a majority of its lenders for restructuring.

Related: Oil Prices Edge Lower As OPEC Nears Record Output

As for Ultra Petroleum, the company had disclosed that it has a debt of nearly $4 billion against $1.3 billion in assets filed with the bankruptcy court. The company’s main assets include gas-producing properties in Wyoming, as well as some assets in Pennsylvania and crude oil properties in Utah.

Since early last year, some 70 North American oil and gas companies have filed for bankruptcy. The numbers aren’t stark: They only account for about 1 percent of U.S. output, but there are fears the trend could pick up pace.

Related: This Data Shows The Shale Debt Crisis Is Hitting Record Levels

According to a recent Deloitte analysis, which examined 500 oil and natural gas exploration and production companies worldwide, 175 of the companies (or around 35 percent) were at high risk of going bankrupt. Together, these companies have more than $150 billion in debt. The report added that the situation is “precarious” for 50 of these companies due to negative equity or leverage ratio above 100.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News