The forecast loan default rate for 2020 among energy companies is 18%, according to Fitch Ratings, while nearly 20% of all energy corporate bonds are trading below 70 cents on the dollar, indicating distress, according to data from MarketAxess.
Privately owned Glass Mountain LLC earlier this month sued troubled producer Chesapeake Energy for allegedly defaulting on an oil transportation contract, according to court documents. A number of these midstream operators borrowed heavily to finance pipeline systems, built to support producers developing new, costlier shale plays when oil prices were higher, but are no longer profitable.
PBF last month said it would sell hydrogen gas plants for $530 million to raise cash. That sale “solves some short-term problems for them,” said one person familiar with the transaction, but cautioned that this alone will not stabilize the company unless fuel demand begins to recover. The person declined to be identified because the matter was not public.Demand, however, is down by roughly 25% in the United States, and oversupply is expected to linger for months.
Oils in a depression -states & cities in a recession-trump we need a plan now -be a leader!!!💵🇺🇸👿
after decades of trillions of profits pitchforked into the savings accounts of the uber rich, these economic pillers have been stripped bare (by private rich shareholders) of the resources to withstand a bad year...as with all things, this is the fault of the rich
High risk, high reward. And vice versa. That’s private capitalism folks. But watch these companies squeal for Government help (aka Socialism). Free market capitalists can’t have it both ways when a disruptor arrives at the energy market’s doorstep.
What would happen next? Anybody can tell me ?
Putin wins yet again. 😞
Bankruptcy is part of the business cycle. Shareholders loose money.
Don't worry, Fed will 'print' the storage space needed to keep these companies open! - 'If wishes were horses, beggars would ride'.
Green New Deal now.
Now,OPEC is try to hold their position.
'You just love to see it!' AOC
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: latimes - 🏆 11. / 82 Read more »
Source: Reuters - 🏆 2. / 97 Read more »