{"id":4842,"date":"2015-01-25T20:28:10","date_gmt":"2015-01-26T01:28:10","guid":{"rendered":"http:\/\/olduvai.ca\/?p=4842"},"modified":"2015-01-25T20:28:10","modified_gmt":"2015-01-26T01:28:10","slug":"oil-and-gas-default-wave-outright-liquidations-next","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=4842","title":{"rendered":"Oil-and-Gas Default Wave, \u201cOutright Liquidations\u201d Next"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/01\/25\/oil-and-gas-default-wave-outright-liquidations-next\/\" target=\"_blank\">Oil-and-Gas Default Wave, \u201cOutright Liquidations\u201d Next<\/a><\/h3>\n<p>Every rally in crude oil since June turned out to be\u00a0a pathetic sucker rally. On Friday, West Texas Intermediate fell over 2% to $45.32 a barrel, back where it had been on January 12, annihilating most of the 12% rally in between. WTI is now 58% below the June peak.<\/p>\n<p>\u201cIf prices stay low well into the latter half of this year and next year, borrowing basis will come down quite significantly\u201d for oil-and-gas exploration-and-production companies in the US, \u201cand that is when you can start to see liquidity spiraling out,\u201d warned Tom Watters, a managing director at Standard &amp; Poor\u2019s oil &amp; gas team. And that, he said, is\u00a0when single-B rated companies could see a wave of defaults.<\/p>\n<p>These \u201cjunk\u201d debt issuers that rode up the fracking boom with borrowed money are among the higher cost producers globally. They would be hit first by the declining prices, Watters said according to\u00a0<a href=\"http:\/\/www.highyieldbond.com\/\" target=\"_blank\">LCD HY Weekly<\/a>. Their revenues are collapsing, but they\u2019ve loaded up on debt that is now strangling them. They\u2019re responding with layoffs, and they\u2019re cutting operating costs and capital expenditures, and they\u2019re shuttering facilities.<\/p>\n<p>But some of these players might not be able to hang in there much longer. On January 15, Canada\u2019s GASFRAC, filed for bankruptcy in Calgary, Alberta, where the company is based, and in San Antonio, Texas, where it filed under Chapter 15 for cross-border bankruptcies.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil-and-Gas Default Wave, \u201cOutright Liquidations\u201d Next Every rally in crude oil since June turned out to be\u00a0a pathetic sucker rally. On Friday, West Texas Intermediate fell over 2% to $45.32 a barrel, back where it had been on January 12, annihilating most of the 12% rally in between. WTI is now 58% below the June [&hellip;]<\/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":[3],"tags":[1361,103,200,2891,2890,1775,834],"class_list":["post-4842","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-bankruptcy","tag-canada","tag-default","tag-junk-debt","tag-liquidations","tag-oil-price-collapse","tag-us"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4842","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=4842"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4842\/revisions"}],"predecessor-version":[{"id":4843,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4842\/revisions\/4843"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}