Biggest Electric Utility Companies That Can’t Survive Anymore – Among the other factors, economy growth experiences the biggest blow as the result of continuous pandemic status. Only some of them could hold the recession just well, while some others should go bankrupt as they fail to bounce back. These companies are Gavilan Resources, Whiting Petroleum, and Echo Energy Partners.
– Gavilan Resources
The first company that file for bankruptcy is Gavilan Resources and three sub-companies under it. This future has been predicted far back in 2018 when Gavilan had trouble to cooperate with the partners such as Sanchez Energy Corporation. The reasons for this dispute are financial uncertainty and the litigation from Sanchez.
During its first years, the company purchased 2.3 billion of Eagle Ford or also known as Comanche’s assets from Anadarko Petroleum. From this investment, Gavilan has rights on 77,000 net acres of oil and gas. This is the assets Gavilan tries to pursue.
– Whiting Petroleum
The trend of company bust also applies to Whiting Petroleum company. This year only, the stock price of this company goes down to 85.15%. With such a big blow, the investors immediately pull out their support. As the result, the company files for bankruptcy.
Many investors hope for good news from Whiting Petroleum, just like another company who could raise the profits just a few weeks before filing bankruptcy. Unfortunately, it doesn’t happen to Whiting Petroleum and the company is closed for business.
– Echo Energy Partners
The company files their bankruptcy document on March 24, 2020. On the data, it is written that the assets count to 50 to 100 million while the debts are much higher on 100 to 500 million. There is no information about the creditor, but the company must do very well to pay the amount of their debt.
Another reason for Echo Energy Partner bankruptcy is the regulation applied by the federal and state government regarding the mass isolation to prevent the spread of corona virus.
Surely, the global pandemic caused by Corona virus hits every company without exception. However, bigger companies and the newly established ones would get the biggest impact. They require high operational cost. When they cannot obtain enough profit, they will go bankrupt just like Gavilan Resources, Whiting Petroleum, and Echo Energy Partners.