• 53 mins Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 7 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 7 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 7 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 7 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 7 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
300,000 Bpd Offline As Kurdistan Conflict Continues

300,000 Bpd Offline As Kurdistan Conflict Continues

The ongoing conflict in Iraqi…

Major Oil Traders See Upside For Oil Prices

Major Oil Traders See Upside For Oil Prices

The world’s oil trading majors…

Wilbur Ross Splashes on Oil, Gas Debt

Oil rig

Investor Wilbur Ross, famous for his big appetite for distressed debt, has spent several hundred million on buying debt in the oil and gas industry, the Wall Street Journal reports, citing sources familiar with the development.

Ross has taken his sweet time entering the oil and gas sector, patiently waiting in the wings while many others were quick to snatch up the debt earlier in the crisis—many of whom were likely surprised and sickened to find out just how long the depressed oil prices have carried on.

These acquisitions will allow Ross’s investment vehicle, W.L. Ross & Co., to take control these distressed oil and gas companies if they are forced by circumstances to file for bankruptcy protection—a move that some may interpret as his confidence that we may finally be at or near the bottom with oil.

The tactic Ross – and other debt investors – is using is buying debt issued by troubled energy companies, and then acquiring either the whole company or part of its assets. The company is already preparing to exchange debt for ownership in Breitburn Energy Partners, which went under and filed for Chapter 11 protection in May. At the same time, it is buying bonds issued by Permian Resources.

The latter company has been the focus of attention for more than one debt investor ever since it ran into trouble. In July, the Wall Street Journal reported that a number of such investors were in talks to acquire the company, which has operations in one of the most attractive parts of the U.S. shale play—the Permian in northern Texas.

Besides W.L. Ross & Co., companies buying Permian Resources debt also included Apollo Global Management, Oaktree Capital Group, and EIG Global Energy Partners.

According to Bloomberg, investment firms have amassed over US$100 billion since mid-2014 to buy energy assets. However, such assets were few initially, as energy companies somehow managed to scrounge a living off their creditors. Now creditors have had enough, and assets for sale have become widely available.

Banks are also selling the debt of distressed energy companies, so we’re likely to soon see a major shift in ownership in the oil and gas sector.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • C Icahn on August 22 2016 said:
    I would love to see much more reported in distressed debt such as this piece

Leave a comment

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