The Gulf's energy ministers reiterated their commitment to supply cuts in an effort "to further speed up the oil market's rebalancing". Bloomberg
The Gulf's energy ministers reiterated their commitment to supply cuts in an effort "to further speed up the oil market's rebalancing". Bloomberg
The Gulf's energy ministers reiterated their commitment to supply cuts in an effort "to further speed up the oil market's rebalancing". Bloomberg
The Gulf's energy ministers reiterated their commitment to supply cuts in an effort "to further speed up the oil market's rebalancing". Bloomberg

Bankruptcy filings by US energy producers at four-year high


Fareed Rahman
  • English
  • Arabic

Bankruptcy filings by US oil and gas producers rose to a four-year high in the second quarter of 2020 due to the downturn caused by the coronavirus pandemic, according to Oslo-based Rystad Energy.

“Chapter 11 filings for US E&P (exploration and production) companies jumped to a four-year high in the second quarter of 2020, both in terms of the overall number of cases and in cases filed by companies with at least $1 billion (Dh3.67bn) in total debt,” the consultancy said in a report.

“Both in 2Q20 (second quarter of 2020) and 2Q16 (second quarter of 2016) the number of cases increased as WTI prices dropped below $40 (per barrel), causing operators with higher breakeven prices to struggle to service their debt.”

Oil prices have seen wide swings this year, mainly due to the coronavirus pandemic that reduced demand for crude while supply remained steady.

Brent, the international crude benchmark, dropped from highs of almost $69 per barrel in January to $19.33 by mid-March as demand buckled due to movement restrictions put in place to stop the spread of Covid-19. West Texas Intermediate – a blend of US crude grades – took a dive and traded briefly below zero on April 20, hitting the revenues of oil and gas producers.

Operators that survived the oil price fall in 2016 "were unable to avoid that fate this time around", according to Rystad Energy.

Some of the largest companies that have filed for Chapter 11 in 2020 include Chesapeake Energy with a debt of $9.2bn, Ultra Petroleum ($5.5bn in debt), Whiting Petroleum ($3.6bn), Denbury Resources ($2.1bn) and Extraction Oil & Gas ($1.9bn).

Chapter 11 in the US provides protection from creditors, allowing a business to restructure while remaining in operation.

The rising number of companies filing for bankruptcy has also "created opportunities for both institutional investors and supermajors to buy into discounted shale acreage", Rystad Energy said.

The US onshore market has seen 14 mergers and acquisition deals this year, with only one transaction worth more than $1bn, according to the consultancy. By comparison, there were six deals that exceeded $1bn during the first seven months last year and nine for the whole of 2019.

“Given the uncertainty and the low commodity prices in the US market so far in 2020, this could be an opportune time for asset-specific acquisitions, especially in oil basins where costs are at historical lows,” Rystad Energy’s senior shale analyst Alisa Lukash said.

“As many of the smaller operators are struggling, robust companies are well positioned to negotiate good prices when expanding their portfolios.”

The largest deal this year is Chevron’s acquisition of Noble Energy in July for a total market enterprise value of $13bn. National Fuel Gas (NFG), a New York-based company also announced plans to acquire Shell’s Appalachian acreage for $541 million.

Rystad Energy also said the external capital raised by oil and gas producers in the US reached $10.5bn so far in 2020, driven primarily by companies like EQT, Laredo Petroleum, Parsley Energy, WPX Energy, Diamondback Energy and Pioneer Natural Resources.

Oil and gas companies raised $12.6bn in debt last year.

“We expect 2020 debt issuance to surpass last year’s level during the third quarter. Capital raising remains focused on debt refinancing and support for restarting drilling programmes,” Ms Lukash said

ELIO

Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett

Directors: Madeline Sharafian, Domee Shi, Adrian Molina

Rating: 4/5

The specs

Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

On sale: Now

Company profile

Date started: 2015

Founder: John Tsioris and Ioanna Angelidaki

Based: Dubai

Sector: Online grocery delivery

Staff: 200

Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends

UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

Qosty Byogaani

Starring: Hani Razmzi, Maya Nasir and Hassan Hosny

Four stars

THE BIO: Martin Van Almsick

Hometown: Cologne, Germany

Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)

Favourite dessert: Umm Ali with dark camel milk chocolate flakes

Favourite hobby: Football

Breakfast routine: a tall glass of camel milk

TO A LAND UNKNOWN

Director: Mahdi Fleifel

Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa

Rating: 4.5/5

Company%20profile
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What went into the film

25 visual effects (VFX) studios

2,150 VFX shots in a film with 2,500 shots

1,000 VFX artists

3,000 technicians

10 Concept artists, 25 3D designers

New sound technology, named 4D SRL

 

The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

About Proto21

Date started: May 2018
Founder: Pir Arkam
Based: Dubai
Sector: Additive manufacturing (aka, 3D printing)
Staff: 18
Funding: Invested, supported and partnered by Joseph Group

Monster Hunter: World

Capcom

PlayStation 4, Xbox One

Country-size land deals

US interest in purchasing territory is not as outlandish as it sounds. Here's a look at some big land transactions between nations:

Louisiana Purchase

If Donald Trump is one who aims to broker "a deal of the century", then this was the "deal of the 19th Century". In 1803, the US nearly doubled in size when it bought 2,140,000 square kilometres from France for $15 million.

Florida Purchase Treaty

The US courted Spain for Florida for years. Spain eventually realised its burden in holding on to the territory and in 1819 effectively ceded it to America in a wider border treaty. 

Alaska purchase

America's spending spree continued in 1867 when it acquired 1,518,800 km2 of  Alaskan land from Russia for $7.2m. Critics panned the government for buying "useless land".

The Philippines

At the end of the Spanish-American War, a provision in the 1898 Treaty of Paris saw Spain surrender the Philippines for a payment of $20 million. 

US Virgin Islands

It's not like a US president has never reached a deal with Denmark before. In 1917 the US purchased the Danish West Indies for $25m and renamed them the US Virgin Islands.

Gwadar

The most recent sovereign land purchase was in 1958 when Pakistan bought the southwestern port of Gwadar from Oman for 5.5bn Pakistan rupees. 

Super Saturday results

4pm: Mahab Al Shimaal Group 3 | US$350,000 | (Dirt) | 1,200m
Winner: Drafted, Pat Dobbs (jockey), Doug Watson (trainer).

4.35pm: Al Bastakiya Listed | $300,000 | (D) | 1,900m
Winner: Divine Image, Brett Doyle, Charlie Appleby.

5.10pm: Nad Al Sheba Turf Group 3 | $350,000 | (Turf) | 1,200m
Winner: Blue Point, William Buick, Charlie Appleby.

5.45pm: Burj Nahaar Group 3 | $350,000 | (D) | 1,600m
Winner: Muntazah, Jim Crowley, Doug Watson.

6.20pm: Dubai City of Gold Group 2 | $300,000 | (T) | 2,410m
Winner: Old Persian, William Buick, Charlie Appleby.

6.55pm: Al Maktoum Challenge Round 3 Group 1 | $600,000 | (D) | 2,000m
Winner: Capezzano, Mickael Barzalona, Salem bin Ghadayer.

7.30pm: Jebel Hatta Group 1 | $400,000 | (T) | 1,800m
Winner: Dream Castle, Christophe Soumillon, Saeed bin Suroor.

UAE jiu-jitsu squad

Men: Hamad Nawad and Khalid Al Balushi (56kg), Omar Al Fadhli and Saeed Al Mazroui (62kg), Taleb Al Kirbi and Humaid Al Kaabi (69kg), Mohammed Al Qubaisi and Saud Al Hammadi (70kg), Khalfan Belhol and Mohammad Haitham Radhi (85kg), Faisal Al Ketbi and Zayed Al Kaabi (94kg)

Women: Wadima Al Yafei and Mahra Al Hanaei (49kg), Bashayer Al Matrooshi and Hessa Al Shamsi (62kg)

What can you do?

Document everything immediately; including dates, times, locations and witnesses

Seek professional advice from a legal expert

You can report an incident to HR or an immediate supervisor

You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline

In criminal cases, you can contact the police for additional support

Name: Colm McLoughlin

Country: Galway, Ireland

Job: Executive vice chairman and chief executive of Dubai Duty Free

Favourite golf course: Dubai Creek Golf and Yacht Club

Favourite part of Dubai: Palm Jumeirah

 

COMPANY%20PROFILE
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The rules on fostering in the UAE

A foster couple or family must:

  • be Muslim, Emirati and be residing in the UAE
  • not be younger than 25 years old
  • not have been convicted of offences or crimes involving moral turpitude
  • be free of infectious diseases or psychological and mental disorders
  • have the ability to support its members and the foster child financially
  • undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
  • A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
FROM%20THE%20ASHES
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While you're here