HOUSTON (Reuters) – Chapter filings by U.S. vitality producers to date this yr have already practically matched the overall for the entire of 2018, legislation agency Haynes & Boone reported on Wednesday, as risky oil and gasoline costs drive firms to hunt safety from collectors.
A complete of 26 companies with money owed totaling $10.96 billion have filed for court docket restructuring by way of mid-August, in keeping with the legislation agency’s report.
Final yr, 28 firms filed for chapter, itemizing $13.2 billion in debt, whereas 24 companies sought safety in 2017 with $8.5 billion in debt.
“Thus far this yr there was an uptick within the variety of filings,” Haynes & Boone stated, noting 20 of the filings have been since Might.
Via most of 2019, U.S. gentle, candy crude oil <CLc1> has been caught within the $50-range on the New York Mercantile Change, ending on Wednesday at $55.23. West Texas Intermediate averaged $65.06 a barrel final yr. Pure gasoline costs even have fallen so low in some locations that some firms have shut in wells and others have paid pipeline operators to take their gasoline.