Nine North American oil and gas producers have commenced Chapter 11 bankruptcy proceedings so far this year, (to March 7) according to law firm Haynes and Boone LP’s Oil Patch Bankruptcy Monitor
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These nine oil patch bankruptcies take the total number of North American oil and gas producers that have filed for bankruptcy since the beginning of 2015 to 51. These bankruptcies, including Chapter 7, Chapter 11, Chapter 15, and Canadian cases, involve approximately $17.39 billion in cumulative secured and unsecured debt. The total number of bankruptcies and total owed to creditors has risen sharply from November last year. Indeed, when the Oil Patch Bankruptcy Monitor was put together back in November, a total of 36 firms had collapsed owning a total of $13.1 billion.
Oil patch bankruptcies: Trending higher
Swift Energy Company and Magnum Hunter Resources Corporation are the largest companies to have filed for bankruptcy since November. These companies collapsed owing a total of $1.2 billion and $1.1 billion in both unsecured and secured debt respectively. All of the bankruptcy filings so far this year have been relatively small in comparison. The largest company to file is Argent Energy (U.S.) Holdings, Inc., Owing a total of $52 million. Osage Exploration And Development, Inc. is the next largest. Osage filed owing a total of $34.5 million to creditors.
Oil patch bankruptcies so far this year
The cumulative value of secured and unsecured debt involved in North American oil patch bankruptcies this year amounts to less than $200 million, a relatively small chunk of $17.39 billion total indicating that the industry could be weathering the tough price environment better than many expect.
North American oilfield services bankruptcies
Haynes and Boone also tracks North American Oilfield Services Bankruptcies, and it looks as if the oil service industry is suffering much more than the E&P business.
