Wednesday, January 7, 2015

The First Shale Oil Casualty: WBH Energy Files For Bankruptcy

And it begins. The collapse in the oil price is going to crush US shale oil production.

WSJ reports:
[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:
WBH Energy, LP
Bankruptcy Case #: 1:15-bk-10003
U.S. Bankruptcy Court
Western District of Texas (Austin)
Bankruptcy Petition #: 15-10003-hcm

Assigned to: Bankruptcy Judge H. Christopher Mott
Chapter 11

Date filed:  01/04/2015
341 meeting:  02/10/2015
Deadline for filing claims:  05/11/2015

WBH Energy, LP 
4407 Bee Caves Road 
Suite 421 
Austin, TX 78746 
Tax ID / EIN: 45-4106472 represented by William A. (Trey) Wood, III 
Bracewell & Giuliani LLP 
711 Louisiana, Suite 2300 
Houston, TX 77002 
713 223 2300 
Fax : 713 221 1212 
There will be many more.


  1. So much for the U.S. pushing Europe to begin shale oil drilling. The U.S. is heading down fast.

  2. Finally :)

    I remember that somebody laughed about oil prices too much