Oil and gas bankruptcies decrease in 2021 as industry recovers
Tuesday, February 8, 2022
Bankruptcy filings by North American oil and natural gas companies decreased in 2021 compared to 2020, according to Natural Gas Intelligence. The decrease is so significant that Haynes and Boone LLP, a law firm that has been tracking industry bankruptcy filings since 2015, is calling an end to the bankruptcy cycle that began during the 2015 oil market downturn.
The firm’s latest report found that aggregate debt by producers filing for bankruptcy in 2021 totaled $2.1 billion, which is the lowest yearly amount since 2015.
Twenty oil and natural gas producers filed for bankruptcy in 2021 which is low compared to the yearly average of 39 since 2015.
The decline in bankruptcy filings coincided with a recovery in commodity prices after a pandemic-induced downturn in 2020.
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How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
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Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
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Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.