US indies batten down the hatches

The sector is largely relying on balance sheet resilience to outlast the downturn. But without an imminent oil price recovery the threat of bankruptcy looms large

Oil market pundits have been prophets of doom even since first unconstrained supply and then coronavirus-related global demand destruction cratered prices. The collapse of Whiting Petroleum into bankruptcy was seen as ominous, even before negative WTI prices at the end of April significantly increased gloominess. Company results for the first quarter are now gradually trickling in, showcasing the extent of the financial damage and preparing investors for the remainder of a gruelling operating year. Almost uniformly, firms have taken similar measures to protect their balance sheets. Hedging strategies are delaying heavy financial losses and producers have cut capex budgets to the minimum.  Pr