November 30, 2017
Bankruptcies by oil and gas producers are down considerably in the past year but filings by oil and gas service companies have been continuing at a steady pace since a surge began in the middle of 2016
Texas has the largest number of producers in bankruptcy, though.
That’s according to a recent report by international law firm Haynes and Boone, which has been tracking 134 North American producers in bankruptcy since 2015.
Twenty of them were filed this year.
At 60, the number of such oil and gas producers in bankruptcy is largest in Texas.
There were 155 oil service providers that have filed since 2015, and 21 midstream companies have also filed bankruptcy in that time period, as of October 31st, 2017.
The firm’s Bankruptcy Chairman Ian Peck said about the report that producer filings “have slowed considerably since the surge in mid-2016.
“Service companies have continued to file bankruptcy at a steady pace since the beginning of this down cycle, due in part to the continued pricing pressure placed on the service providers.
“With some exceptions, we expect this trend to continue for the near future.”
In 2017, the 20 companies filing for bankruptcy represent approximately $5.6 billion in secured and unsecured debt, Texas Lawyer‘s Katherine Tucker reported.