OIl & Gas 360

Summary: Even before the additional shocks from COVID-19, the Wall Street funding that had supported the shale boom was dwindling and oversupply of oil & gas was pressuring commodity prices and well-level economics. Equity investors were pushing for a new business model prioritizing free cash flow over production growth.

We had the pleasure to sit down with Gleeson Van Riet and Jeff Anapolsky, Managing Directors from Crossroads Strategic Advisors, to discuss the changing oil and gas industry and how energy bankruptcies induced by the COVID-19 crisis will differ from the bankruptcies in the 2015-2016 period. Crossroads Strategic Advisors is a boutique advisory firm based in Houston, TX that provides advice on recapitalization and restructuring strategies for middle market companies. Amid volatility and uncertainty, clients hire Crossroads to navigate out-of-court workouts, distressed M&A and bankruptcy reorganizations.

In this interview, we discuss how this cycle of energy bankruptcies may differ from 2015-2016, best practices to weather the downturn, avoiding common pitfalls when pursuing distressed M&A opportunities, and how advisors like Crossroads can guide operators, investors, creditors and other stakeholders through the restructuring process.



 Key Takeaways 


Key Takeaways:

  • While there was an oversupply of oil leading into both downturns, the demand destruction caused by the COVID-19 crisis is unprecedented
  • In addition, debt and equity capital markets for Energy were much stronger heading into prior downturn than now
  • During the last energy restructuring wave, there was limited industry consolidation as many companies emerged from bankruptcy with debt converted to reorganized equity
  • In the current wave, we expect the lack of access to capital markets will likely force more consolidation through mergers, asset sales and liquidations across the energy sector
  • Having a clear plan and direction on managing your business and cost structure in multiple commodity price environments is critical to reacting swiftly and decisively to industry changes
  • Being proactive in communicating your plans with lenders is best practice for successfully navigating a downturn
  • Protect your cash flow by closely monitoring customers’ payment patterns and financial health
  • Review the strength of your supply chain and dual source everything to have reliable backups
  • For companies with strong balance sheets, this downturn may provide acquisition opportunities at bargain prices
  • Crossroads provides highly experienced advisors with creative restructuring solutions at cost-effective rates



About Crossroads Strategic Advisors

About Crossroads Strategic Advisors: Based in Houston, Crossroads Strategic Advisors provides advice on recapitalization and restructuring strategies for middle market companies. As turnaround operators with an investor’s perspective, Crossroads provides valuable insights and creative solutions for operators, investors, creditors and other stakeholders. Amid volatility and uncertainty, clients hire Crossroads to navigate out-of-court workouts, distressed M&A and bankruptcy reorganizations. For further information, please visit www.crossroads-advisors.com.



Gleeson Van Riet

Managing Director

  • SilverBow Resources: CFO
  • Sanchez Energy: CFO
  • Credit Suisse / DLJ
  • Harvard: MBA
  • U Penn / Wharton: BA / BS
  • IPAA Member


  • Jeff Anapolsky

    Managing Director

  • T. Rowe Price: Distressed Debt
  • American Capital: Special Situations
  • Akin Gump: Bankruptcy Lawyer
  • Bear Stearns, Wasserstein Perella
  • Rice: Restructuring Professor
  • Harvard: JD / MBA
  • U Penn / Wharton: BA / BS
  • TMA, ABI Member


  • Legal Notice