And it begins. The collapse in the oil price is going to crush US shale oil production.
[S]igns of strain are building in the oil patch, where revenue growth hasn’t kept pace with borrowing. On Sunday, a private company that drills in Texas, WBH Energy LP, and its partners, filed for bankruptcy protection, saying a lender refused to advance more money and citing debt of between $10 million and $50 million. Neither the Austin-based company nor its lawyers responded to requests for comment.
Energy analysts warn defaults could be coming. “The group is not positioned for this downturn,” said Daniel Katzenberg, an analyst at Robert W. Baird & Co. “There are too many ugly balance sheets.”
From the filing:
There will be many more.WBH Energy, LPBankruptcy Case #: 1:15-bk-10003U.S. Bankruptcy CourtWestern District of Texas (Austin)Bankruptcy Petition #: 15-10003-hcmAssigned to: Bankruptcy Judge H. Christopher MottChapter 11VoluntaryAssetDate filed: 01/04/2015341 meeting: 02/10/2015Deadline for filing claims: 05/11/2015DebtorWBH Energy, LP4407 Bee Caves RoadSuite 421Austin, TX 78746TRAVIS-TXTax ID / EIN: 45-4106472 represented by William A. (Trey) Wood, IIIBracewell & Giuliani LLP711 Louisiana, Suite 2300Houston, TX 77002713 223 2300Fax : 713 221 1212Email: email@example.com