In its examination of Chapter 11 bankruptcies for energy companies from Jan. 1 to March 31, Haynes & Boone reported filings for midstream, oilfield services and oil and gas producer companies – with each industry experiencing a highest or lowest or average quarter.
Texas accounted for the majority of midstream and OFS filings, a typical trend since the firm began tracking the bankruptcies by quarter in 2015.
Of the three midstream companies that filed in the first quarter, an average figure, two filed in the Southern District of Texas. Lonestar Pipeline Co. filed on Feb. 3, while Two Guns Consulting and Construction filed on March 9. Combined, the three midstream companies saw the lowest aggregate since 2015 in years when there have been filings in Q1 with $6.7 million.
OFS filings in Texas account for four out of five in the country, including Third Ocean Vessel and Rig, Seadrill, Allied Equipment, and American National Carbide Co. While the number of filings was one of the lowest since 2015, the first quarter saw its third-highest debt volume, though 99.8% of the aggregate was weighted by more than $7.2 billion in secured and unsecured debt tied to Seadrill.
The OFS count marked a slowdown from a flurry of filings in the third and fourth quarters of 2020 with 17 in Q4 and 27 in Q3. The last time there were 20 or more filings in a quarter was Q3 2016.
For E&P companies, Texas saw four filings in the first quarter, tying with Wyoming. The eight filings reflected the highest volume since 17 in the first quarter of 2016.
For more information on the reports from Haynes & Boone, see below: