{"id":17841,"date":"2016-02-16T13:33:08","date_gmt":"2016-02-16T18:33:08","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17841"},"modified":"2016-02-16T13:33:08","modified_gmt":"2016-02-16T18:33:08","slug":"one-third-of-energy-companies-could-go-bankrupt-deloitte-warns-as-credit-risk-hits-record-high","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17841","title":{"rendered":"One Third Of Energy Companies Could Go Bankrupt Deloitte Warns As Credit Risk Hits Record High"},"content":{"rendered":"

One Third Of Energy Companies Could Go Bankrupt Deloitte Warns As Credit Risk Hits Record High<\/a><\/h3>\n
\u00a0At 1600bps, the extra yield investors are demanding to take on US energy credit risk has never been higher. However, if a\u00a0new report from Deloitte\u00a0<\/a>proves true, this is far from enough as they forecast roughly\u00a0a third of oil producers are at high risk of slipping into bankruptcy this year<\/strong>\u00a0as low commodity prices crimp their access to cash and ability to cut debt.<\/div>\n
\n
\n

Record high US Energy credit risk…<\/p>\n

\"\"<\/a><\/p>\n

The report,\u00a0as Reuters reports,<\/a>\u00a0based on a review of more than 500 publicly traded oil and natural gas exploration and production companies across the globe, highlights the\u00a0deep unease permeating the energy sector as crude prices sit near their lowest levels in more than a decade, eroding margins, forcing budget cuts and thousands of layoffs<\/strong>.<\/p>\n

\n
The roughly 175 companies at risk of bankruptcy have more than $150 billion in debt,<\/strong>\u00a0with the slipping value of secondary stock offerings and asset sales further hindering their ability to generate cash, Deloitte said in the report, released Tuesday.<\/div>\n

“These companies have kicked the can down the road as long as they can and now they’re in danger of kicking the bucket,”<\/strong>\u00a0said William Snyder, head of corporate restructuring at Deloitte, in an interview. “It’s all about liquidity.”<\/p>\n

Some oil producers are also choosing to liquidate hedges for a quick infusion of cash, a risky bet.<\/p>\n

“2016 is the year of hard decisions, where it will all come to a head,”<\/strong>\u00a0John England, vice chairman of Deloitte, said in an interview.<\/p><\/blockquote>\n

For now, however, there is a corner of the market that offers perhaps a smidge of saefty…<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

One Third Of Energy Companies Could Go Bankrupt Deloitte Warns As Credit Risk Hits Record High \u00a0At 1600bps, the extra yield investors are demanding to take on US energy credit risk has never been higher. However, if a\u00a0new report from Deloitte\u00a0proves true, this is far from enough as they forecast roughly\u00a0a third of oil producers […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1361,12427,4333,195,12428,7815,554,683,4318],"class_list":["post-17841","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bankruptcy","tag-corporate-restructuring","tag-crude","tag-debt","tag-deloitte","tag-energy-sector","tag-natural-gas","tag-reuters","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17841","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17841"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17841\/revisions"}],"predecessor-version":[{"id":17842,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17841\/revisions\/17842"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17841"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17841"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}