Friday, November 20, 2015

"Thirty-six North American oil and gas producers filed Chapter 11 bankruptcies this year"

Following up on yesterday's "Chesapeake Is Trading Like A Bankruptcy (CHK)".

WTI $41.84 up 12 cents and more concerning for a lot of these guys, natural gas front futures 2.199 -0.077.

From MoneyBeat:

Oil Producer Bankruptcies Piling Up
It’s been a long year for oil and gas companies.

After trading at an average price of $92.91 a barrel in 2014, the U.S. oil benchmark has averaged around $50 a barrel this year. It dipped below $40 a barrel briefly this morning.
Thirty-six North American oil and gas producers filed Chapter 11 bankruptcies this year through Nov. 8, according to law firm Haynes and Boone LP.

The cases so far involve $13 billion in secured and unsecured debt, and “industry and economic indicators suggest more producer bankruptcy filings will occur before the year is out,” the law firm  says.

Sixteen of this year’s bankruptcies were filed in Texas, with another six in Canada, four each in Delaware and Colorado and the rest in Louisiana, Alaska, Massachusetts and New York. The biggest, with $4.3 billion of secured and unsecured debt, was KKR & Co.’s Samson Resources Corp. in September. Earlier this week, a judge ruled that Samson’s resigning chief executive won’t be paid his bonus outright.

Even so, some investors argue that not enough U.S. oil producers have gone under to help shrink the glut of crude that is weighing on oil prices....MORE
Sept., 2015
Good News! In Commodity Bear SuperCycles™ Most Of The Damage Is Done In The First Six Years
August, 2015 
Oil & Gas Bites Private Equity: KKR Looking At A $4.1 Billion Wipeout
July 2015 
"UBS Exposes The 'Scary Reality' Of High Yield Energy"
"It’s Happening: Debt Is Tearing up the Fracking Revolution"
April 2015 
Oil: Here Come the Shale Bankruptcies
January 2015
Oil: "The First Shale Casualty: WBH Energy Files For Bankruptcy; Many More Coming" (the most leveraged energy companies)
Citigroup Goes All Medieval On the Energy Sector, Takes Quarterstave and Broadsword to Estimates
These Shale Companies Will File For Bankruptcy First: Goldman's "Best And Worst" Shale Matrix 

And from March 2015's  "Cash Strapped Chesapeake Reduced to Acting as Real Estate Broker for Shale Property Buyers (CHK; KKR)
Always remember: In the short run balance sheets don't move stocks, in the long run they rule.