Shale giant Oasis Petroleum files for bankruptcy

TEXAS: Oasis Petroleum Inc filed for Chapter 11 bankruptcy protection on Wednesday, the latest US shale producer to seek court-aided restructuring as the energy industry reels under an unprecedented crash in oil prices due to the COVID-19 pandemic. Shares of the company, which earlier this month skipped interest payments on some bonds, fell over 24 per cent premarket. Virus-led lockdowns, which decimated travel and fuel demand, have forced many shale producers to halt oil drilling, leaving them with no source of cash to repay their massive debts.
Oasis had long-term debt of $2.76 billion with just $77.4 million in cash and cash equivalents as of June 30. The company said it expects to cut debt by $1.8 billion through the restructuring and secured $450 million in debtor-in-possession financing. US oil prices have so far fallen by nearly a third from over $60 a barrel at the beginning of the year and briefly turned negative in April. In July and August, 13 North American oil producers filed for protection from creditors, according to a report by law firm Haynes and Boone. — Reuters