Connect with us

Energy

Bankruptcy Mayhem in the Oil Patch [Chart]

Published

on

Bankruptcy Mayhem in the Oil Patch [Chart]

Bankruptcy Mayhem in the Oil Patch [Chart]

Total debt of newly bankrupted energy companies is soaring each month

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

Most investors are aware that there is significant carnage in the oil patch. Low energy prices caught overleveraged companies off guard, and it’s forced many of these companies to seek protection from their creditors through bankruptcy.

However, the pace of new bankruptcies is accelerating fast, and now bigger companies are being affected. This week’s chart shows that the 11 new bankruptcies in April 2016 carry a substantial debt load of nearly $15 billion – most of which is unsecured.

A quick look at the data, which we pulled from Haynes and Boone, LLP, tells the tale:

New BankruptciesTotal DebtAvg. Debt Per Company
January 20163$32,000,000$10,666,667
February 20166$280,000,000$46,666,667
March 20167$1,840,000,000$262,857,143
April 201611$14,920,000,000$1,356,363,636

In the first two months of 2016, there were nine bankruptcies. Not one of the companies filing had debts that exceeded $200 million.

In March, there were a total of seven new bankruptcies, including Venoco Inc. Venoco is a private company that is heavily oil-weighted with assets located offshore and onshore in Southern California. Venoco’s filing listed that it had $1.28 billion in debts, 71% of which are unsecured.

Meanwhile, April was the biggest month for oil patch bankruptcies in the last two years. A total of 11 companies filed, but even more meaningful to investors is that four of the bankruptcies were public companies with debts exceeding $1 billion.

Pacific Energy, formerly Pacific Rubiales, used to be the largest operating oil company in South America. Now, however, the company is in the midst of undergoing dramatic restructuring. Common shares have been delisted and the company is also seeking to get extensions on its $5 billion of unsecured debt.

Texas-based Ultra Petroleum, which has nearly $4 billion in unsecured debt, has dropped from the NYSE to the OTC as it too seeks protection. The stock’s 52 week high was $17, but it now shares are trading for mere pennies.

Two other big companies to go to court were Energy XII and Midstates Petroleum. They each owe roughly $3 billion and $2 billion of total debt, respectively. Energy XII operates 10 of the largest oilfields on the Gulf of Mexico Shelf, while Oklahoma-based Midstates is focused on the application of modern drilling and completion techniques in oil and liquids-rich basins in the onshore U.S.

The grand total of debt for all April bankruptcy filers was an astounding $14.9 billion, most of which is unsecured. For reference, the 42 energy companies that filed for bankruptcy in all of 2015 had a combined $17.2 billion in debt.

Click for Comments

Batteries

Ranked: The World’s Largest Lithium Producers in 2023

Three countries account for almost 90% of the lithium produced in the world.

Published

on

Voronoi graphic showing the top lithium producers in 2023.

The World’s Largest Lithium Producers in 2023

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Three countries—Australia, Chile, and China—accounted for 88% of lithium production in 2023.

In this graphic, we list the world’s leading countries in terms of lithium production. These figures come from the latest USGS publication on lithium statistics (published Jan 2024).

Australia Leads, China Approaches Chile

Australia, the world’s leading producer, extracts lithium directly from hard-rock mines, specifically from the mineral spodumene.

The country saw a big jump in output over the last decade. In 2013, Australia produced 13,000 metric tons of lithium, compared to 86,000 metric tons in 2023.

RankCountryLithium production 2023E (metric tons)
1🇦🇺 Australia86,000
2🇨🇱 Chile44,000
3🇨🇳 China33,000
4🇦🇷 Argentina9,600
5🇧🇷 Brazil4,900
6🇨🇦 Canada3,400
7🇿🇼 Zimbabwe3,400
8🇵🇹 Portugal380
🌍 World Total184,680

Chile is second in rank but with more modest growth. Chilean production rose from 13,500 tonnes in 2013 to 44,000 metric tons in 2023. Contrary to Australia, the South American country extracts lithium from brine.

China, which also produces lithium from brine, has been approaching Chile over the years. The country increased its domestic production from 4,000 metric tons in 2013 to 33,000 last year.

Chinese companies have also increased their ownership shares in lithium producers around the globe; three Chinese companies are also among the top lithium mining companies. The biggest, Tianqi Lithium, has a significant stake in Greenbushes, the world’s biggest hard-rock lithium mine in Australia.

Argentina, the fourth country on our list, more than tripled its production over the last decade and has received investments from other countries to increase its output.

With all the top producers increasing output to cover the demand from the clean energy industry, especially for electric vehicle (EV) batteries, the lithium market has seen a surplus recently, which caused prices to collapse by more than 80% from a late-2022 record high.

Continue Reading
Appian-Capital

Subscribe

Popular