Latest Casualty of Shale's Collapse Is Oil Driller Denbury

  • Bloomberg
  • Stock Market News
Latest Casualty of Shale's Collapse Is Oil Driller Denbury
Credit: © Reuters.

(Bloomberg) -- Denbury Resources Inc (NYSE: DNR ). became the latest debt-laden oil producer to seek bankruptcy protection in the aftermath of a pandemic-fueled plunge in crude prices.

The Plano, Texas-based driller filed for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern (NYSE: SO ) District of Texas. It joins a long list of other oil and gas producers that have been forced to seek protection in recent months. The most well-known of those names, Chesapeake Energy Corp (NYSE: CHK )., filed for Chapter 11 in June.

Denbury elected in mid-July to skip paying about $3 million of interest on senior subordinated notes maturing in 2023, triggering a 30-day grace period before it entered a formal default.

The U.S. energy industry has been hammered by low crude prices after the Covid-19 pandemic zapped demand, and natural gas prices have been depressed by a stubborn glut of domestic production. Many companies in the sector were circling the drain long before the pandemic, following years of heavy borrowing to fund constant drilling.

©2020 Bloomberg L.P.

© Bloomberg. A red control valve sits on an oil pipe. Photographer: Akos Stiller/Bloomberg

Add Chart to Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
Please try another search

Related Articles