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Extraction Oil & Gas Files for Bankruptcy Amid Commodity Slump

(Bloomberg) — Extraction Oil & Gas Inc. filed for bankruptcy, becoming the latest producer to succumb to high debt and dwindling liquidity amid a difficult environment for energy companies.

The Denver-based company filed in Delaware after skipping a May 15 interest payment on its 2024 bonds, triggering a 30-day grace period while it explored strategic options to address its roughly $1.5 billion of debt.

Its bankruptcy filing follows a collapse in oil prices to historic lows as the coronavirus pandemic slashed demand, and Saudi Arabia and Russia competed for market share. Extraction withdrew its 2020 guidance in May and warned it may have to file for bankruptcy.

More than 200 North American producers have filed for Chapter 11 since the beginning of 2015, according to a May report from law firm Haynes & Boone.

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