Bankruptcy

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 nine energy-related filings with aggregate debt of $2.4 billion in the past few months. Although all of the Debtors except for one are Texas-based, the filings are scattered among venues including the Districts of Delaware and Utah and the Southern and Western Districts 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

1/15/15

WDTX

15-10003

WBH Energy, LP (Austin, TX)

$49M

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+

 

 

 

 

 

 

 

 

 

 

 

 











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