Linn Energy filed for bankruptcy on May 11. It reported $9.3 billion in debt at the end of 2015.
See the other energy companies who have fallen victim to the oil crash in 2016.
Linn Energy filed for bankruptcy on May 11. It reported $9.3 billion in debt at the end of 2015.
See the other energy companies who have fallen victim to the oil crash in 2016.
D.J. Simmons Inc. filed for bankruptcy March 1. It had $10.9 million in debt.
D.J. Simmons Inc. filed for bankruptcy March 1. It had $10.9 million in debt.
Photo: SERGEI SUPINSKY / AFP/Getty Images
RMR Operating LLC filed for bankruptcy March 8. It had $3.5 million in debt.
RMR Operating LLC filed for bankruptcy March 8. It had $3.5 million in debt.
Photo: James Durbin / Midland Reporter-Telegram
New Source Energy Partners filed for bankruptcy March 15. It had $51 million in debt.
New Source Energy Partners filed for bankruptcy March 15. It had $51 million in debt.
Venoco Inc. filed for bankruptcy March 18. It had $1.3 billion in debt.
Venoco Inc. filed for bankruptcy March 18. It had $1.3 billion in debt.
Photo: Jake Lacey
Emerald Oil filed for bankruptcy March 22. It had $337 million in debt.
Emerald Oil filed for bankruptcy March 22. It had $337 million in debt.
Photo: San Antonio Express News
Whistler Energy II, LLC filed for bankruptcy March 24. It had $155 million in debt.
Whistler Energy II, LLC filed for bankruptcy March 24. It had $155 million in debt.
Photo: San Antonio Express News
7711 Operating Company LLC filed for bankruptcy on March 31. It had $532,000 in debt.
7711 Operating Company LLC filed for bankruptcy on March 31. It had $532,000 in debt.
Postrock Energy Corp. filed for bankruptcy April 1. It had $99 million in debt.
Postrock Energy Corp. filed for bankruptcy April 1. It had $99 million in debt.
Photo: The Associated Press
Bluff Creek Production filed for bankruptcy on April 4. It had $7 million in debt.
Bluff Creek Production filed for bankruptcy on April 4. It had $7 million in debt.
Photo: Getty Images
Aztec Oil & Gas Inc. filed for bankruptcy on April 13. It had $1.5 million in debt.
Aztec Oil & Gas Inc. filed for bankruptcy on April 13. It had $1.5 million in debt.
Photo: Getty Images
Hydrocarb Energy Corp. filed for bankruptcy on April 13. It had $14.3 million in debt.
Hydrocarb Energy Corp. filed for bankruptcy on April 13. It had $14.3 million in debt.
Energy XXI filed for bankruptcy on April 14. It had $2.8 billion in debt.
Energy XXI filed for bankruptcy on April 14. It had $2.8 billion in debt.
Photo: Eric Gay / The Associated Press
Goodrich Petroleum filed for bankruptcy on April 15. It had $507 million in debt.
Goodrich Petroleum filed for bankruptcy on April 15. It had $507 million in debt.
Trinity River Resources filed for bankruptcy on April 21. It had $123 million in debt.
Trinity River Resources filed for bankruptcy on April 21. It had $123 million in debt.
Photo: San Antonio Express News
Paladin Energy Corp. filed for bankruptcy on April 21. It had $22.9 million in debt.
Paladin Energy Corp. filed for bankruptcy on April 21. It had $22.9 million in debt.
Photo: San Antonio Express News
Ultra Petroleum Corp. filed for bankruptcy on April 29. It had $3.9 billion in debt.
Ultra Petroleum Corp. filed for bankruptcy on April 29. It had $3.9 billion in debt.
Photo: Getty Images
Pacific Exploration & Production Co. filed for bankruptcy on April 29. It had $5.3 billion in debt.
Pacific Exploration & Production Co. filed for bankruptcy on April 29. It had $5.3 billion in debt.
Photo: Bloomberg
Midstates Petroleum Co. filed for bankruptcy on April 30. It had $2.1 billion in debt.
Midstates Petroleum Co. filed for bankruptcy on April 30. It had $2.1 billion in debt.
Warren Resources Inc. filed for bankruptcy on June 3. It had $545.2 million in debt and assets of $229.7 million.
Warren Resources Inc. filed for bankruptcy on June 3. It had $545.2 million in debt and assets of $229.7 million.
Photo: James Durbin / Reporter-Telegram / James Durbin
North American drillers could face a $43 billion cash shortfall this year even with oil prices on the rise, according to a new study.
U.S. shale drillers and Canadian producers would need oil prices to skyrocket to $80 a barrel oil to finance operations without borrowing more money or cutting spending by a whopping 40 percent, consultancy AlixPartners said in a study released Thursday.
The gap in the cash flow they need to keep operating in shale oil patches across the United States isn’t nearly as large as it was last year, when AlixPartners said the industry lacked $130 billion on much lower oil prices.
But oil companies that haven’t already gone through bankruptcy proceedings or fixed their balance sheet problems by other means are still at a stark disadvantage. These firms have on average $26,000 for each barrel of oil equivalent per day they produce, twice as much as rivals that have already restructured their balance sheets. More than 200 North American oil producers and energy services companies filed for bankruptcy over the past two years, according to Dallas law firm Haynes & Boone.
Despite the influx of optimism in the oil patch, drillers and service companies will likely continue to restructure their balance sheets or sell themselves in mergers and acquisition deals. AlixPartners said companies should behave as if crude prices are still around $45 a barrel, “to keep any surprises on the upside, not the downside.”
“For those companies that take requisite actions, at long last 2017 could be a year of rebuilding,” said Bill Ebanks, managing director of AlixPartners’ oil, gas and chemicals practice, in a written statement.
AlixPartners also said it estimates oil field service companies that operate on land have seen profitability fall 68 percent over the past three years, even as they cut 250,000 jobs around the world. Don’t expect a full recovery this year, but more of a transition to higher demand in 2018, the consultancy said.
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Categories: Energy
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