Sabine Oil & Gas Corp. is seeking Chapter 11 bankruptcy protection, making it the sixth and the largest U.S. oil producer yet to file for bankruptcy because of cheap oil prices.
Court papers filed in New York on Wednesday show the Houston company had $2.48 billion in assets and total liabilities of $2.91 billion at the end of May, the second largest U.S. bankruptcy this year, according to data compiled by Bloomberg. It’s a mid-sized oil and gas company, and had $550 million more in debt than the second-biggest producer to file for bankruptcy this year, Fort Worth-based Quicksilver Resources.
Sabine drills for oil and gas in the Haynesville Shale in east Texas and Louisiana, and the Eagle Ford Shale and the Granite Wash in Texas. It had 165 employees and about thousands of drilling sites across the state.
In a statement, Sabine’s finance chief blamed its high debt and low oil and natural gas prices and volatility across energy markets for the company’s situation, saying it could have otherwise fixed its balance sheet by selling assets – if not for cheap oil and gas devaluing its properties.