Recent increased crude oil prices might offer a glimmer of hope for some energy companies hoping to avoid bankruptcy.
Ever since the COVID-19 pandemic struck the world, at least three major oil and gas operations in Oklahoma marched to bankruptcy court. Chesapeake Energy’s Chapter 11 filing in June of this year was the largest with $16.2 billion in debt. The company continues making its way through the countless filings in the U.S. Bankruptcy court of the Southern District in Texas.
Unit Corporation filed in May with more than $2 billion in debt. Chaparral Energy filed in August listing $0.56 billion in debt.
Yet Bloomberg reports that times are changing for distressed oil and gas companies. It says industry watchers believe the number of bankruptcies in 2020 likely won’t be repeated in the coming new year.
Click here for Bloomberg story.