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Colorado’s oil major, Extraction Oil and Gas has filed for Chapter 11 bankruptcy after executive and managerial pay out. The firm was totally saddled with the lingering $1.7 billion long-term debt and had been struggling to stay. Extraction has secured a $125 million financing plan that would offer $50 million in new money post approval from the U.S. Bankruptcy Court.
As the US drilling industry sails through a rough patch, the auction market has once again become active. On Friday, a $500,000-worth Caterpillar oil swabbing rig was being auctioned by Auctioneer Greg Highsmith before a North Dakotan buyer paid $27,500. Auctions are likely to remain on the calendar throughout the year and into 2021.
Weatherford announced that Mark A. McCollum, President, CEO, has left the company and its board of directors. Karl Blanchard, executive vice president and COO, and Christian Garcia, executive vice president and CFO, will form the Office of the Chief Executive, reporting directly to the board of directors and will oversee the day to day operations. With McCollum's departure, Weatherford will reduce the size of the board from seven directors to six.
Mexico-based company Libre Abordo announced that it was bankrupt. Venezuelan President Nicolas Maduro also ended an oil-for-food agreement that had allowed the firm to supply water trucks in exchange for millions of barrels of Venezuelan crude. The Mexican companies proclaimed that they were targets of an international political campaign, driven by the U.S., which had led to a loss of over $90 million and the suspension of Venezuelan crude lifting.
Gavilan Resources LLC, formed by buyout firm Blackstone Group Inc., has filed for bankruptcy protection, a victim of the collapse in energy prices and a long-running commercial dispute with a rival Texas shale driller. They sought protection from creditors under chapter 11, owing to the slump in oil prices due to the Coronavirus pandemic. That rebound in prices proved to be too late for the firm.
Texas-based Diamond Offshore Drilling Inc yesterday filed for bankruptcy protection after the firm recently missed paying interest and informed that it had retained restructuring advisers. The drilling company’s filing in Texas seeks protection under Chapter 11. Diamond Offshore attributed the move to the “price war” between OPEC and Russia and the collapse in demand due to the coronavirus pandemic, which worsened its day rates and demand for its services.
British offshore services provider, Valaris is reportedly looking towards an imminent bankruptcy, as it struggles against lower contract awards. If news agency Reuters were to be believed, Valaris has been preparing for talks with creditors to agree on bankruptcy terms. News of Valaris having already appointed restructuring advisors is also being reported. Valaris reported $6.5bn of outstanding debt last year, compared to small $100m cash.
Colorado-based Whiting Petroleum Corp today initiated Chapter 11 bankruptcy proceedings, as crude oil prices crashed to 18-year lows. The E&P firm currently has more than $585 million in cash on its balance sheet and will maintain business operations in the normal course, without any material interruption to its vendors, partners or employees.
The leading engineering and consultancy firm, McDermott has filed for bankruptcy. While filing at the Southern District of Texas, the firm has estimated its liabilities to lie between $1 billion and $10 billion. McDermott has also decided to liquidate Lummus Technology unit for at least $2.725 billion. The company has been struggling with the debt taken on from its $3.5 billion takeover of Chicago Bridge & Iron Co. in 2018.
Oilfield services giant, Weatherford International has concluded its financial restructuring and came out of Chapter 11 protection. Weatherford has cut roughly $6.2 billion of outstanding funded debt, secured $2.6 billion in exit financing facilities, which also includes a $450 million revolving credit facility. Additionally, the US-based giant has secured a $195 million letter of credit facility, and secured over $900 million of liquidity.
Almost a month after fire and explosion destroyed PES-owned largest refinery on the US east coast, Philadelphia Energy Solutions filed for its second Chapter 11 bankruptcy. The filing comes in less than two years from the first-time bankruptcy filing for the firm. A filing submitted to US Bankruptcy Court showed PES has both assets and liabilities between $1-$10 billion.