Gardere Partner John Melko Discusses Decreasing Oil Prices in OGFJ Article

11 February 2015 News

Gardere Partner John P. Melko, chair of the Firm's Financial Restructuring and Reorganization Practice Group, authored an article for the February edition of the Oil & Gas Financial Journal on the effects that decreasing oil prices has on the energy industry.

"We are in the midst of year end audits, which means that 'earnings season' will soon be here, along with the required new reservoir reserve reports. Those reports will cause many borrowers with reserve-based loans to be in default of loan covenants," Mr. Melko wrote. "Even the better capitalized producers will be staring at capital budgets which have not changed in costs, but which will bring in lower revenues because of price drops, and thus drilling projects will be deferred. Because of the cancellation or deferral of those projects, oilfield service companies have already cut back staff, meaning that many experienced and previously high earning workers are newly unemployed."

According to Mr. Melko, while we are in for "a wild ride," this isn't anything that the oilfield hasn't seen before and there are things that producers, service companies and lenders in the United States should do to protect themselves.

The complete article can be found here.

Related Services


Cryptocurrency in China is like BIG BROTHER in 1984!
20 October 2019
Internet, IT & e-Discovery Blog
California Governor Signs New Telehealth Insurance Law
18 October 2019
Health Care Law Today
Continued Increase in E-Commerce and Online Ordering Changes Landscape of Urban Transportation
17 October 2019
Dashboard Insights
CMS Proposes Revisions to Stark Law
16 October 2019
Health Care Law Today
PATH Summit 2019
18-20 December 2019
Arlington, VA
MedTech Impact Expo & Conference
13-15 December 2019
Las Vegas, NV
Review of 2020 Medicare Changes for Telehealth
11 December 2019
Member Call
BRG Healthcare Leadership Conference
06 December 2019
Washington, D.C.