Full Title: Deciphering Third-party Business Risk in a Period of Weak Commodity Prices
Author(s): Deloitte
Publisher(s): Deloitte
Publication Date: June 1, 2016
Full Text: Download Resource
Description (excerpt):
Across the oil and gas industry, companies are buckling under the steep decline in commodity prices since mid-2014. Forty-two companies filed for bankruptcy in 2015. With oil prices hovering near 10-year lows, that number could quadruple this year. A recent Deloitte study found that 175 more companies, or about one-third of the world’s publicly traded oil companies, are at risk of bankruptcy. They carry a combined $150 billion in debt, and prospects for raising cash are diminishing amid weaker prices for asset sales and decreased value of secondary stock offerings.