Feb
09

Stung by Low Oil Prices, Companies Face a Reckoning on Debts

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Oil rigs stacked for storage near Midland, Tex. The oil industry regularly undergoes booms and busts. But the downside of this cycle may prove more extreme, and messier. CreditMichael Stravato for The New York Times

MIDLAND, Tex. — On the 15th floor of an office tower in Midland looms a five-foot-long trophy black bear, shot by the son of an executive at Caza Oil & Gas.

But it is Caza that has recently fallen prey to a different kind of predator stalking the Texas oil patch: too much debt.

While crude prices have dropped more than 70 percent over the last 20 months, a reckoning in the nation’s vast oil industry has only just begun. Until recently, companies were able to ride out the slump using hedges to sell their oil for higher than the low market prices…

Stung by Low Oil Prices, Companies Face a Reckoning on Debts

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