Wednesday, March 11, 2015

As Oil Prices Fall, Oil & Gas Bankruptcies Rise


While a new report from the Administrative Office of the U.S. Courts shows a 46% decline in chapter 11 filings from 2010 to 2014, there appears to be an uptick in energy related filings, especially by Texas-based companies.

The report from the Administrative Office shows that chapter 11 filings decreased from 14,191 in fiscal year 2010 to 7,658 in fiscal year 2014, a decline of 46% in just four years.    A separate report from the U.S. Energy Information Administration shows the price of West Texas Intermediate Crude dropping from over $100 per barrel in July 2014 to just over $50 per barrel in January 2015.  While bankruptcy is typically a lagging indicator in the economy, oil and gas related bankruptcy filings appear to be on the rise with at least three publicly traded companies filing this month.   

I was able to locate eleven energy-related filings with aggregate debt of $4.9 billion in the past few months.   While all of the American debtors were Texas-based, they included filings in Delaware, Utah and the Southern and Western Districts of Texas.   Calgary, Canada has also received two filings, including one which resulted in a Chapter 15 in the Western District of Texas.



Date
Court
Case #
Case Name
Debts
10/10/14
DE
14-12308
Endeavour Operating Corporation (Houston, TX)
$1.2B
10/31/14
UT
14-31632
Marion Energy, Inc. (McKinney, TX)
$171M
11/9/14
DE
14-12514
KiOR, Inc. (Pasadena, TX)
$242M
1/14/15
Alberta, Canada
15001-00396
Gasfrac Energy Services, Inc. (Calgary)
$88.7M CDN + $10M USD
1/15/15
WDTX
15-10003
WBH Energy, LP (Austin, TX)
$49M
1/15/15
WDTX
15-50161
Ch. 15
Gasfrac Energy Services, Inc.(Calgary)
$88.7M CDN + $10M USD
1/27/15
SDTX
15-60003
Royalty Partners, LLC  (Houston, TX)
$1.6M
2/20/15
Alberta, Canada
25-1963517
Ivanhoe Energy Inc. (Calgary)
$103M CDN
3/3/15
DE
15-10458
Cal Dive International, Inc. (Houston, TX)
$286M+
3/8/15
WDTX
15-10336
Dune Energy, Inc. (Houston, TX)
$105M+
3/9/15
SDTX
15-60016
BPZ Resources, Inc. (Houston, TX)
$229M+
3/17/15
DE
15-10585
Quicksilver Resources, Inc. (Fort Worth, TX)
$2.35B

2 comments:

Joey Constanza said...

It is interesting to see how large oil companies are dealing with the decrease in oil price. I didn't think that some would file for bankruptcy. Like you stated in the article, the amount of companies that filed for bankruptcy back in 2010 as opposed to 2014 did decrease. However, with the dropping prices, there might be a shoot up of bankruptcy filings. http://www.gregdunnhi.com

Nancy Jorden said...

The oil prices seem to be going down a lot. I wonder why this is the case. I hope to be able to find something soon. There are a lot of options to choose from. I hope prices will continue to go down. http://www.curtishatfield.net/bankruptcy-law