Oil: "The First Shale Casualty: WBH Energy Files For Bankruptcy; Many More Coming" (the most leveraged energy companies)
From ZeroHedge:
"There are too many ugly balance sheets," warns one energy industry analyst, adding simply that "the group is not positioned for this downturn."
While the mainstream media continues to chant the happy-clappy side of
lower oil prices, spewing various 'statistics' about how the down-side
of low oil prices is 'contained' and the huge colossal massive tax cut
means 'everything is awesome' for America, the data - and now actions -
do not bear this out. Macro data has done nothing but disappoint and
now, we have the first casualty of the shale oil leverage debacle as WSJ reports, on Sunday, a
private company that drills in Texas, WBH Energy LP, and its partners,
filed for bankruptcy protection, saying a lender refused to advance more
money. There are many more to come...
In December we illustrated the problem names (in the publicly traded markets) among the most-levered energy companies in America...
And now, as The Wall Street Journal reports, the
bankruptcies have begun as financing costs are not just prohibitive,
there is no liquiidty available at any price for many...
American
oil and gas companies have gone heavily into debt during the energy
boom, increasing their borrowings by 55% since 2010, to almost $200
billion....
...
MORE
