Haynes and Boone has tracked 90 North American oil and gas producers that have filed for bankruptcy since the beginning of 2015. These bankruptcies, including Chapter 7, Chapter 11, Chapter 15, and Canadian cases, involve approximately $66.5 billion in cumulative secured and unsecured debt. As of August 1, 2016, 48 producers have filed bankruptcy so far this year, representing approximately $49.3 billion in cumulative secured and unsecured debt. With oil prices falling below $40 in the first week of August, all indications suggest more producer bankruptcy filings will occur during 2016.
During the month of July, 4 E&P companies filed bankruptcy with cumulative debt of approximately $5.2 billion. In contrast, 5 E&P companies filed bankruptcy in June, with cumulative debt of approximately $1.5 billion. Texas bankruptcy courts remain at the top of the venue leaderboard, both in terms of the number of E&P filings and cumulative debt. Forty-four E&P bankruptcies have been filed in Texas, representing approximately $29.5 billion in cumulative secured and unsecured debt.
The lawyers of Haynes and Boone’s Energy and Bankruptcy practice groups are continuing to follow industry developments. The firm has played a key role in a number of high-profile E&P and oilfield service matters, including asset sales, refinancings, debt restructurings and Chapter 11 cases, representing debtors, creditors, energy lenders, and private equity investors.
Industry analysts and members of the press have referenced the Oil Patch Bankruptcy Monitor, Oilfield Services Tracker, Oil Patch Bankruptcy Blog, and Haynes and Boone’s Borrowing Base Survey as an indicator of the impact of market conditions on producers’ future borrowing bases. The slides that follow include Haynes and Boone’s most recent summary of E&P bankruptcy filings, which will be updated periodically during 2016.