Fewer energy companies filed for bankruptcy in 2017, but the sector is still rife with opportunities for distressed/turnaround investors, according to George Putnam, III, author of The Turnaround Letter. 

Putnam's newly released Mid-Year Bankruptcy Review & Outlook shows that just a third of filings and 56% of assets during the first half of 2017 were from companies in this industry group compared to half of filings and 81% of assets a year ago.

"Even though energy bankruptcies are on the decline, we believe there will continue to be good opportunities for distressed/turnaround investors in that sector for some time," Putnam writes. "A large number of energy companies have emerged from Chapter 11 over the last several quarters and exchanged their debt for new post-reorganization stock. This has created a supply/demand imbalance in the stocks, as former creditors are anxious to sell the new stock but potential buyers have not yet gotten up to speed on the reorganized companies."

Click here to read more of Putnam's analysis.