Express-News and the Houston Chronicle both covered the crude oil price crash and its impact on corporate calculations, featuring comments from Gardere Partner John P. Melko. Crude oil prices have been cut by more than half since the summer, slicing into companies' revenue and the value of their oil reserves. Some oil and gas firms are already missing debt payments, and experts say mergers, corporate restructurings and bankruptcies are on the horizon.
According to Mr. Melko, smaller companies will likely get hit the hardest, though firms of all sizes may have to consider the sale of some properties, or merging with competitors out of necessity or opportunity. "Even for the better companies, they're all concerned they'll get their bond debt or their equity rating downgraded," he said.
Subscribers can access the complete Express-News article here, and the Houston Chronicle article here