Eagle Ford Operators Struggle
Two more Eagle Ford companies are showing signs of trouble as Texas oil and gas bankruptcies skyrocket.
Related: Texas Oil & Gas Bankruptcies Lead Pack
During the past week, C&J Energy Services and Atlas Resource Partners have joined the ranks of Eagle Ford companies who are trying to stay afloat.
C&J announced it would convert $1.4 billion of its debt into new common equity shares as part of its chapter 11 restructuring.
“We are pleased to enter into this Restructuring Support Agreement, which is a significant step forward in our ongoing efforts to deliver our capital structure, strengthen our business and respond proactively to the challenging market environment. After a thorough evaluation of our options, we are confident that we have reached a deal that is highly advantageous for C&J and will provide solid financial footing to enable us to capitalize on future opportunities as the commodity pricing environment begins to recover.”
Atlas Resource Partners was delisted from the New York Stock Exchange after missing a debt payment. The company annoucned it was having cash flow problems and will now be traded on a securities exchange run by the New York-based OTC Markets Group (OTCQX). Atlas currently has 22 producing wells in Atascosa County, Texas.
Texas has been hit specifically hard with industry bankruptcies. According to the law firm of Haynes and Boone, more that half (25) of the 2016 filing being initiated in Texas courts. The combined total Texas bankruptcy filings for 2015-16 is 43, representing approximately $29 billion in cumulative debt.