COMMODITIES news

Delaware Basin driller Rosehill Resources declares bankruptcy

By Hailey Waller on 7/27/2020

NEW YORK (Bloomberg) –Rosehill Resources Inc. filed for bankruptcy protection after a plunge in oil prices forced the Permian shale explorer to seek a restructuring of its debt.

The company filed for Chapter 11 in U.S. Bankruptcy Court in South Texas. Rosehill drills for crude mostly in the Delaware Basin portion on the western side of the Permian Basin.

Scores of U.S. shale companies have been struggling to stay afloat after years of spending borrowed money to expand production left them vulnerable to crude’s historic crash this year.

In March, when Saudi Arabia and Russia’s agreement to curb production collapsed just as the global pandemic destroyed demand, Rosehill announced it was halting all drilling and fracking activity for 2020. In July, Rosehill entered a restructuring agreement with certain lenders.

The case is Rosehill Resources Inc., 20-33695, U.S. Bankruptcy Court for the Southern District of Texas.

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