90 oil and gas operators with more than $60 billion in debt have already filed for bankruptcy: here’s what it’s like Depressed oil prices that are unable to support heavy debt loads have pushed 90 oil and gas companies into Chapter 11 since the beginning to of 2015, according to the Haynes and Boone Bankruptcy Monitor. These companies have approximately
Bankruptcy has been a word that has made denizens of the oil patch cringe in the last year and half. As oil price has declined, bankruptcies have stacked up. Fortunately for those following oil and gas companies, the ladies and gentlemen at Haynes and Boone have kept up to speed on the goings-on in the oil patch, and in the
HERO Re-enters Chapter 11 with Plans to Dissolve the Company Hercules Offshore (ticker: HERO) announced today that it has decided to return to Chapter 11 bankruptcy less than seven months after the company’s initial bankruptcy claim. Hercules plans to dissolve the company and sell all remaining assets instead of restructuring and staying in business. Hercules said in a press release
Halcon Resources announced on May 18, 2016, the company reached an agreement with shareholders and bondholders to enter into a pre-packaged Chapter 11 filing. “The restructuring plan, if implemented, will result in the elimination of approximately $1.8 billion of debt and approximately $222 million of Preferred Equity, and will reduce the company’s ongoing annual interest burden by more than $200
SandRidge Energy and Breitburn Energy Partners became the latest companies to succumb to the market forces and file for Chapter 11 bankruptcy protection on Monday. SandRidge Energy SandRidge reached an agreement with the majority of its lenders and bondholders to swap $3.7 billion in debt for control of the company, and will enter into a pre-arranged restructuring. Roughly two thirds
Linn Energy files bankruptcy with $9.4 billion in debt on the balance sheet The total dollar amount of oil and gas bankruptcies grow substantially this week when Linn Energy (Ticker: LINE) announced that it has filed for Chapter 11 on May 11, 2016. The company said previously that current commodity prices, mixed with its weak balance sheet could potentially make
Median Debt to EBITDA is 3.6 Times across 77 U.S. E&P Companies: EnerCom Analytics It happened when ‘lower for longer’ went from being a popular catch phrase to bitter reality. Today, bankruptcy has become an increasingly common word across the energy sector. Increasing federal oversight of oil and gas lending, decreasing cash flows and higher leverage ratios for oil and
Swift Energy finalizes plan to forgive $905 million in debt following Chapter 11 Swift Energy announced today that the company is emerging from bankruptcy following the completion of its financial restructuring. Under the terms of the company’s plan to reorganize, roughly $906 million of the company’s senior debt and “certain other unsecured claims” were exchanged for 88.5% of the post-emergence
On April 15, 2016, Goodrich Petroleum announced the company has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The RSA and the bankruptcy proceeding will allow for the restructuring of the Company’s balance sheet, which will strengthen the company’s financial position by reducing long-term debt and enhancing financial flexibility. Under the terms of the restructuring arrangement, Goodrich
Private equity firms pump $170 million into Southcross Holdings LP Poor economics driven by low oil prices is the harsh reality being faced by many operators since the end of 2014, forcing 42 companies to file for bankruptcy in 2015, but none of those operators have made it through the Chapter 11 process as quickly as Southcross Holdings LLP. Just
How Much Borrowing Base will be Left after Redeterminations? Bankruptcy and restructuring have become prevalent words in the oil and gas industry during the present price downturn. With spring borrowing base redeterminations already under way or quickly approaching, speculation is rampant as to the extent of cuts and who will suffer the consequences when cuts are made. Oil & Gas
Bankrupt E&P companies looking to end pipeline agreements The downturn in oil prices took a serious toll on the U.S. E&P market last year, with 42 companies filing for bankruptcy in 2015. Those companies’ total debt amounted to $17.85 billion, and many of them are seeking to restructure under Chapter 11. As part of that restructuring, many oil and gas
