The rate of exploration and production (E&P) bankruptcy filings in the energy sector has continued to drop over the course of 2017, with total filings down by more than two-thirds compared to the same period in 2016, according to the law firm of Haynes and Boone. While 64 E&P companies filed for bankruptcy from January 1, 2016 through October 31, 2016, only 20 E&P company bankruptcy filings have occurred during the same timeframe in 2017. Year-to-date, E&P bankrupcties have represented approximately $5.6 billion in cumulative secured and unsecured debt, according to the firm.

Since the beginning of 2015, Haynes and Boone has tracked 134 North American oil and gas producers that have filed for bankruptcy, while there have been 155 oilfield service bankruptcies. Additionally, as of October 31, 21 midstream companies had filed Chapter 11 bankruptcy in the U.S. since 2015.

“Bankruptcy filings by producers have slowed considerably since the surge in mid-2016, while service companies have continued to file bankruptcy at a steady pace since the beginning of this down cycle, due in part to the continued pricing pressure placed on the service providers," said Ian Peck, chair of the firm’s Bankruptcy and Business Restructuring section. "With some exceptions, we expect this trend to continue for the near future.”

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