Re: Good News About Oil Company Bankruptcies
Posted: Fri 28 Jul 2017, 01:52:28
Latest update I could find: May 2017. Sounds like there won't be much to add to this tread in the future. Given the total debt involved in the bankruptcies so far is $80 billion compared to the $1 TRILLION in debt someone claimed the industry took on in recent years two aspects seem clear. First, the vast majority of that debt is being serviced sufficiently enough to avoid bankruptcy. Second, since that huge debt obligation is being met the industry obviously hasn't been as big a money loser as some have claimed.
Those negative ninnies can't have it both ways: if the oil patch did borrow that much capex and spent it on so many money losing projects we should have seen many 100's millions drawn into bankruptcy and not just the 8% we've seen so far. Especially since so few are being filed now:
Texas oil bankruptcies down to a trickle even as oil prices slide
"When oil prices bottomed out last year, it led to waves of bankruptcies, nearly half of them filed in Texas. The current recovery — a hesitant one — has slowed the courthouse filings to a trickle. Haynes and Boone’s latest Oil Patch Bankruptcy Monitor report found just two bankruptcies in April and only nine so far this year, including four in Texas.
The Haynes and Boone report has tracked 123 oil and gas company bankruptcies involving $80 billion in debt since 2015. "Many of the overleveraged oil and gas producers sought bankruptcy protection earlier in the current down cycle and have already addressed their financial issues,” said Ian Peck, chairman of Haynes and Boone’s bankruptcy and business restructuring section, in a written statement. “Of course, the continued depression in commodity pricing has resulted in a sustained, albeit relatively slower, trickle of North American bankruptcy filings.”
More at
https://www.dallasnews.com/business/ene ... ices-slide
Those negative ninnies can't have it both ways: if the oil patch did borrow that much capex and spent it on so many money losing projects we should have seen many 100's millions drawn into bankruptcy and not just the 8% we've seen so far. Especially since so few are being filed now:
Texas oil bankruptcies down to a trickle even as oil prices slide
"When oil prices bottomed out last year, it led to waves of bankruptcies, nearly half of them filed in Texas. The current recovery — a hesitant one — has slowed the courthouse filings to a trickle. Haynes and Boone’s latest Oil Patch Bankruptcy Monitor report found just two bankruptcies in April and only nine so far this year, including four in Texas.
The Haynes and Boone report has tracked 123 oil and gas company bankruptcies involving $80 billion in debt since 2015. "Many of the overleveraged oil and gas producers sought bankruptcy protection earlier in the current down cycle and have already addressed their financial issues,” said Ian Peck, chairman of Haynes and Boone’s bankruptcy and business restructuring section, in a written statement. “Of course, the continued depression in commodity pricing has resulted in a sustained, albeit relatively slower, trickle of North American bankruptcy filings.”
More at
https://www.dallasnews.com/business/ene ... ices-slide