National

Bankruptcies Slow Down For Now

Haynes and Boone has tracked 123 North American oil and gas producers that have filed for bankruptcy since the beginning of 2015. These bankruptcies, including Chapter 7, Chapter 11, Chapter 15, and Canadian cases, involve approximately $79.9 billion in cumulative secured and unsecured debt. As of April 27, 2017, nine producers have filed bankruptcy in 2017, representing approximately $5.7 billion in cumulative secured and unsecured debt.

After a two-year onslaught, bankruptcies in the oil patch have slowed dramatically, according to the new report released April 27th.

In the first four months of the year, the number of new oil and gas Chapter 11 cases have come in much lower than what it was in the same period last year, according to report by Dallas law firm Haynes & Boone.

Nine U.S. oil producers, including Houston’s Memorial Production Partners and Vanguard Natural Resources, have filed for Chapter 11 bankruptcy protection this year, compared to 29 this time last year. These cases bring the number of North American oil-company bankruptcies to 123 since 2015, involving nearly $80 billion in debt. Houston-based Adams Resources & Energy filed the most recent bankruptcy on Haynes & Boone’s list.

The slowdown in E&P bankruptcies has come as the result of higher crude prices and cost-cutting helping to strengthen balance sheets. Crude’s crash over the last two weeks has the industry on edge again.

Maybe the storm has not passed,” said Charles Beckham, a partner at Haynes & Boone. Beckham said he wouldn’t be surprised to see another wave of bankruptcies if oil prices don’t quickly recover back into the $50 a barrel range.

Haynes and Boone, LLP is one of the American Lawyer top 100 law firms, with more than 575 lawyers in 15 offices and 40 major legal practices.

Comments

The crossroads of energy information for minerals owners in Oklahoma. Where you can: See recent prices of mineral and lease transactions. Receive an offer to lease or buy your minerals.

Find relevant news stories on the most active areas, including the Scoop and Stack Plays.

Data Powered by Oseberg

Today’s E&P world is rapidly shifting towards data-driven decision making, but those decisions are only as good as the data behind them. Access Oseberg's deep, accurate, and detailed pool of insight-rich industry data with our powerful analytical and search tools and get the clearest picture of what's happening as soon as it happens.

Disclaimer

This web site is maintained solely for the personal use of our visitors. Although we at Oklahoma Minerals have made all reasonable efforts to provide accurate information, we cannot guarantee the completeness, timeliness or accuracy of the information contained herein. Nothing in this web site contains investment advice. Any decisions based upon the information contained in this web site are the sole responsibility of the user.

Copyright © 2020 OklahomaMinerals.com

To Top
Show Buttons
Hide Buttons
Supreme court ruling raises questions about energy rules in OklahomaFull Story