Kelli Norfleet in Reuters: Oil Service Firms Eye New Survival Tactics Amid Weak U.S. Market

07/19/2019

Reuters talked with Haynes and Boone, LLP Partner Kelli Norfleet about how oilfield service companies are preparing to weather the warnings of a looming oil glut.

Here is an excerpt:

CAN MERGERS FIX MARGIN PRESSURE?

Profits for service companies that added people and equipment following the 2015-2016 oil price collapse also have suffered. Oilfield equipment utilization fell nearly 13 points and profitability tumbled 26 points versus the previous quarter, according a June survey by the Dallas Federal Reserve bank. Its survey polled 60 oilfield service companies in Texas, New Mexico and Louisiana.

“If a much-needed transaction doesn’t happen, service companies will have to look at refinancing or entering into out of court agreements with debt-holders, or filing bankruptcy,” said Kelli Norfleet, a restructuring partner at law firm Haynes and Boone.

To read the full article, click here.

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