Haynes, Bankruptcy, Us, Boone

Haynes, Bankruptcy

US oil producers on pace for most bankruptcies since last oil downturn

US oil producers on pace for most bankruptcies since last oil downturn

1/10/2020 11:45:00 PM

US oil producers on pace for most bankruptcies since last oil downturn

Oasis Petroleum Inc and Lonestar Resources US Inc's bankruptcy filings are the latest in a slew of restructurings that put oil-and-gas producers ...

BusinessOasis Petroleum Inc and Lonestar Resources US Inc's bankruptcy filings are the latest in a slew of restructurings that put oil-and-gas producers on track for their biggest year of bankruptcies since the 2016 shale downturn.FILE PHOTO: Oil pump jacks work at sunset near Midland, Texas, U.S., August 21, 2019. Picture taken August 21, 2019. REUTERS/Jessica Lutz

Ford posts stronger-than-expected quarterly profit, expects full-year pretax profit Apple developing search engine to compete with Google: Report Marshall Islands records first COVID-19 cases

02 Oct 2020 04:20AMShare this contentBookmarkNEW YORK: Oasis Petroleum Inc and Lonestar Resources US Inc's bankruptcy filings are the latest in a slew of restructurings that put oil-and-gas producers on track for their biggest year of bankruptcies since the 2016 shale downturn.

Thirty-six producers with US$51 billion in debt filed for bankruptcy protection in the first eight months of the year, according to the law firm Haynes and Boone. The coronavirus pandemic crushed fuel demand and left debt-laden producers without access to credit.

AdvertisementAdvertisementThe number of companies filing still lags 2016, when 70 companies filed for bankruptcy. However, those firms were generally smaller and left a total of US$56 billion in debt.Oil and gas producer bankruptcies on track for most since 2016: https://graphics.reuters.com/USA-SHALE/BANKRUPTCY/jznpnlmjepl/chart.png

The United States grew to become the world's largest oil producer at nearly 13 million barrels per day (bpd), led by shale companies. However, those companies, in order to maintain high levels of production, need to keep drilling new wells to offset the swift decline rates from each site. Many shale producers took on heavy debt to finance their operations.

Despite the industry's growth, investor returns have been weak for years, and share prices struggled even as the broader Standard & Poor's 500 stock index set ever-higher records.AdvertisementAdvertisement"It is reasonable to expect that a substantial number of producers will continue to seek protection from creditors in bankruptcy before this year is over," Haynes and Boone said in its bankruptcy report.

Oasis, which operates in the Bakken formation of North Dakota and Permian in Texas, announced the news on Wednesday. Lonestar said it was going to file for bankruptcy on Thursday.Largest oil and gas bankruptcies in 2020 by total debt: https://graphics.reuters.com/USA-SHALE/BANKRUPTCY/xegvbjejbvq/chart.png

IKEA's malls arm says expansion plans intact as customers return post-lockdown US plays down China sanctions over Taiwan arms Surge in COVID-19 cases and deaths raises calls for UK lockdown

The coronavirus pandemic caused fuel demand to slump by one-third globally, and U.S. prices briefly plunged through negative-US$40 a barrel. Prices have recovered to roughly US$40 but that is still not considered high enough to keep many companies afloat.

In the first three quarters of 2019, there were 33 producer bankruptcies, and 22 in the same period in 2018.There were more U.S. crude producer bankruptcies in the second quarter than in any period since 2016, and without a continued recovery in the oil price, more are expected, said Chris Duncan, research analyst at Brandes Investment Partners, which has US$18 billion in assets under management.

In addition to oil producers filing for bankruptcy protection, 37 oilfield service companies have also filed, the Haynes and Boone said.Major U.S. oil producer bankruptcies: https://graphics.reuters.com/USA-SHALE/BANKRUPTCY/jznvnlmlevl/chart.png(Reporting By Jessica Resnick-Ault and Arathy Nair; Editing by Cynthia Osterman)

Read more: CNA »

iPhone 12 and Apple’s thinking behind advanced features

Apple has just launched the new iPhone 12 and fans are excited. We take a hard look at not just the latest phone Apple has rolled out but whether its playbook is looking tired, if 5G is all it is cracked out to be and how the world’s most valuable company can keep making money. Lin Suling speaks to IMD Business School’s LEGO Professor of Management and Innovation Howard Yu and Vice President of Client Devices research at IDC Bryan Ma.

.....what?...are you saying, that the Orange Buffoon was not able to safe that industry?....may be he is not the greatest deal maker.....

Exclusive: Marathon Petroleum cutting at least 6per cent of refinery staff at nine US plantsMarathon Petroleum Corp's oil-refining unit is cutting at least 6per cent of its white-collar staff, according to people familiar with the matter, ...

Top US oil refiner Marathon Petroleum to lay off 12per cent of workforceREUTERS: Marathon Petroleum Corp , the largest U.S. oil refiner, said it would lay off about 2,050 employees, or 12per cent of its workforce, at ...

US oil refiner Marathon Petroleum cuts 12% of staff because of COVID-19Marathon Petroleum Corp, the top US oil refiner, is cutting 12 per cent of its workforce amid continued declines in fuel consumption due to the ...

White House stimulus proposal goes over US$1.5 trillion with US$20 billion for airlinesThe Trump administration has proposed including a US$20 billion extension in aid for the battered airline industry in a new stimulus proposal to ...

White House stimulus proposal goes over US$1.5 trillion with US$20 billion for airlinesWASHINGTON: The Trump administration has proposed including a US$20 billion extension in aid for the battered airline industry in a new stimulus ...

WTO backs EU tariffs on US$4b US goods over Boeing subsidies: SourcesWASHINGTON (REUTERS) - The World Trade Organisation (WTO) has authorised the European Union to impose tariffs on US goods worth US$4 billion (S$5.5 billion) to retaliate against subsidies for US planemaker Boeing Co, people familiar with the matter said.. Read more at straitstimes.com.