Distressed Investing in Upstream Oil and Gas

Summary

This practice note discusses distressed investing in upstream oil and gas. Distressed investing is the practice of providing equity financing or purchasing assets from a company facing financial distress, due to cash flow problems or because the value of their assets are, or will soon become, insufficient to satisfy their liabilities. This practice note discusses considerations impacting the strategy of distressed investors and risks to the value being sought by distressed investors in the U.S. oil and gas (O&G) upstream exploration and production (E&P) industry.