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How likely are bankruptcies in this current climate with prices bottoming out in the industry for basic and service companies? Any tips for doing research or where to look for bankruptcy likelihood or risk? How well situated are companies like FANG, MTDR, HESM, NOA and TGE? I'm not looking for investment advice, just tips on how or where to watch, or if there is some special location, site or forum specific to this industry that watches this topic.

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Your bankruptcy exposure is pervasive.  More specifically, just about everybody in the industry, indeed the entire economy except for outfits like Amazon, are exposed to bankruptcy.   Let's remember what "bankruptcy" is: it is a mechanism whereby either persons or corporations that are unable to pay the bills seek refuge, in order to provide a common forum for hammering out deals with creditors.  USA bankruptcy law is a lot different from Breitish (and thus Canadian,e tc) BK law.  The whole idea is to give a "fresh start" to the bankrupt.  UK law is focused on the corporation creditors;  USA bankruptcy law is focused on the Debtor. 

IN USA law, the Debtor receives the benefit on the "automatic stay," a provision found at Title 11, United States Code sec. 362(a).  That provision prevents any creditor from taking any action against the Debtor; the creditor has to come before the OCurt and file a Proof of Claim, and the claim gets dealt with inside the bankruptcy system.  So you have the situation where Debtors still have cash; just "not enough cash."  And that is the case in just about anybody involved in oil extraction today;  nob ody has "enough csh."  So, you can anticipate that lots of companies will file for bankruptcy protection, thus forcing their creditors to come to the table and negotiate a deal.  Those deals typically involve the creditors taking "less," a process known as "taking a haircut."  

Sometimes bankruptcies go "all the way" and no deals are found, in which case either the assets of the company are sold in a "bulk sale of assets" free of the creditor claims, under Section 363, or the company is liquidated entirely and the assets go to the creditors  (a common result in UK and Canadian law), or the creditors are issued equity shares in place of their claims, and the current equity holders are ejected, leaving them either nothing or some crumbs.  Because of these various risk profiles, yuou will find that the threat of BK, or the filing of a BK petition, is horrors to creditors, and deals are made, on the theory that "something is better than nothing."  It gets complicated fast, it gets expensive fast to pay the lawyers, so usually what happens is that the Debtor can re-structure, or re-arrange its affairs and its debts, without actually Filing, as once Filed, these things take on a life of their own, and the players all lose more. 

In today's oil production market, the risk of bankruptcy is just about 100% for everybody.  Food for thought. 

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