Some Bankrupt Oil and Gas Drillers Can’t Give Their Assets Away

From Dawn McCarty and Asjylyn Loder writing at Bloomberg:

Oil is in free fall and Terry Clark couldn’t be happier.

In mid-2014, when the crude price topped $100 a barrel, Clark made an offer to buy properties from Dune Energy Inc., a small driller with money trouble. Dune turned him down. A year later, as oil plunged to $60 a barrel, Dune filed for bankruptcy and Clark’s White Marlin Oil & Gas Co. picked up the assets at auction at a deep discount.

“What we offered versus what we got it for, it’s a great price,” Clark said. “We’re going to continue to play these bankruptcies. We’re participating in two more right now.”

Winners and losers are emerging from the energy bust. What’s a meal for Clark is indigestion for banks that financed the boom using oil and gas properties as collateral. The four biggest U.S. banks — Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. — have set aside at least $2.5 billion combined to cover souring energy loans and have said they’ll add to that if prices stay low.

Read the rest of the story at Bloomberg.

Comment count on this article reflects comments made on and Facebook. Visit Breitbart's Facebook Page.