The Eagle Ford loses another operator as Energy & Exploration Partners become the 18th Texas oil driller to file for bankruptcy.
Related: Oil & Gas Bankruptcies Likely to Increase
Energy & Exploration was founded in 2008 and owns about 61,000 net acres in Texas and Wyoming, including holdings in the Eagle Ford shale. The company was not able to bounce back from prolonged low crude prices and owed creditors tens of millions of dollars.
“We have taken this difficult, but necessary step in order to provide adequate time to complete ongoing discussions and processes with our lenders to restructure our balance sheet and create a strong financial foundation for the future.”
This latest announcement has Energy & Exploration Partners joining many other Texas producers who have filed bankruptcy since the first the year including Sabine, American Eagle Energy, Quicksilver Resources, BPZ Resources, WBH Energy and Walter Energy. Analysts are warning that this is just the tip of the iceberg and many are forecasting bankruptcies will likely increase in the new year.
Haynes and Boone, LLP released a report that lists 36 bankruptcies nationwide in 2015 totaling about $13 billion in debt. See full report below.