After a two-year downpour, bankruptcies in the oil patch have slowed dramatically, FuelFix.com reports.
In the first four months of the year, the number of new oil and gas Chapter 11 cases are much lower than what they were in the same period last year, according to reports this week 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. Those nine producers combined represent $5.7 billion secured and unsecured debt.
These cases bring the number of North American oil-company bankruptcies to 123 since 2015, involving nearly $80 billion in debt. In 2015 and 2016, just four Louisiana oil producers—Saratoga Resources, Samco Oil, American Natural Energy Corp. and Whistler Energy II—filed for bankruptcy, representing $422,028,206 in debt, according to Haynes & Boone. None have done so this year.
Texas leads the nation, with 55 producers declaring bankruptcy, representing nearly $36.9 billion in debt.
The slowdown in oil-producer bankruptcies is a sign higher crude prices and relentless cost-cutting have eased the financial pressure, FuelFix.com reports. But this week, U.S. oil prices fell below $46 a barrel, putting the industry on edge again.
FuelFix.com has the full story. See the Haynes & Boone report.
