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The Who’s Who of Who’s Doomed in the Oil Patch

Hypothetically, the price of crude stays fucked for the next 5 years. If so, I suspect companies laden with lots of debt will find it increasingly difficult to meet their covenants. I am sure you ponder, clad in your fruit of the loom bikini styled underwears, over there in your housing tenements, who might suffer the pangs of a deflationary death, given the pin action in crude.

Well, I have a list! Unlike Hitler, my list wasn’t made to hurt people, but instead help you avoid potential cataclysm.

(stock, debt burden, debt/eq level)

PBR $132 bill, 4.5x
SDRL $11.9 bill, 3.8x
PAGP $11.27 bill, 4.54x
LINE $10 bill, 13.4x (done)
CRC $6.4 bill, 4.12x
TRGP $6 bill, 2.57x
EPE $4.93 bill, 3.6x
UPL $3.41 bill, 5x

And for stocks that are almost assuredly heading for $00.00, barring a miracle.

PGN $2.61 bill, 144x
SFY $1.18 bill, 66x
ATLS $1.52 bill, 33x
PVA $1.19 bill, 32x
EXXI $4 bill, 27x
SSE $1.59 bill, 24x
NADL $2.67 bill, 17x
ORIG $4.83 bill, 15x
PACD $2.95 bill, 11x

data provided by Exodus
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2 comments

  1. it is showtime

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