The number of North American producers that filed for bankruptcy protection in the first quarter of 2021 reached the highest number for a first quarter since 2016, yet the wave of bankruptcies has significantly slowed since the peaks in the second and third quarter of 2020, law firm Haynes and Boone said in its latest tally to March 31.
The Oil Patch Bankruptcy Monitor showed that eight producers filed for bankruptcy this past quarter, which was the highest Q1 total since 2016 when 17 oil producers in North America sought protection from creditors.
Texas accounted for 50 percent of the total producer filings in the first quarter of 2021, with four in total, Haynes and Boone said.
The law firm noted that there were no producers with billion-dollar bankruptcies in Q2 2021, which had not happened since the third quarter of 2018.
The total debt for producers that filed in the first quarter was just over $1.8 billion—the second-lowest total for a Q1 after $1.6 billion in Q1 2019, according to Haynes and Boone.
Even though the number of first-quarter 2021 bankruptcies was the highest for a Q1 since 2016, it showed the trend of slowing filings after 18 oil and gas producers filed in the second quarter of 2020 and another 17 in the third quarter, the two quarters in which the oil price crash and the crisis were most severely felt by indebted producers.
Apart from eight producers, the first quarter of 2021 also claimed five oilfield services companies that filed for bankruptcy, Haynes and Boone data showed. This number is the third-lowest Q1 total since 2015, and much lower than 27 filings in Q3 2020 and another 17 filings from oilfield services companies in Q4 2020.
The aggregate debt for oilfield services companies that filed in Q1 2021 was over $7.2 billion—the third-highest Q1 total since 2015, but one company, Seadrill Limited, accounted for 99.8 percent of the aggregate debt for the quarter, Haynes and Boone said.
By Tsvetana Paraskova for Oilprice.com
- PEDOPHILES ARE OFFICIALLY A PROTECTED CLASS IN AMERICA NOW
- Armstrong: Prepare for WWIII: The West NEEDS war because the entire financial system is collapsing
- Congressman Jim Jordan gets Debbie Birx to admit the truth…
- Fed throws Biden under the bus, says hes collapsing the country
- Comedian Alex Stein Trolls Leftist Protesters Outside His NYC Comedy Show
- A Major Prophetic Voice Is Warning That Food Confiscation Will Happen In America When Shortages Get Really Severe
- Dr. Geert Vanden Bossche forecasts total chaos within 2 months.
- Why Are They Still Pushing the Global Warming Hoax When We Have Real Problems to Take Care Of?
- Biden Admin Reportedly Losing Faith in the Ukraine Victory Plan
- This is What Happened in Kremenchug
Views: 0