Exploration & Production

US Oil Producer Denbury Resources Files for Bankruptcy Protection

Texas-based Denbury Resources joins a growing wave of companies in oil and gas industry to buckle due to low oil prices.

Myles McCormick, Financial Times

Wed, 07/29/2020 - 11:00 AM

US Oil Producer Denbury Resources Files for Bankruptcy Protection

By the end of last month, 23 E&P companies had filed for bankruptcy in 2020 , according to Texas law firm Haynes & Boone. (Source: Hart Energy)

Denbury Resources has joined the pile-up of U.S. oil and gas producers filing for bankruptcy protection following a price crash that has decimated the sector.

The heavily indebted Texas-based oil producer said it had agreed a restructuring plan with lenders that would see it eliminate $2.1 billion in debt after recent ructions in the oil market proved the final straw.

“Recently our entire industry has been highly impacted by the global oil demand destruction caused by the COVID-19 pandemic, driving record low oil prices and rapid changes in energy market conditions,” said Chris Kendall, Denbury president and CEO.

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