St. Louis-based Boomerang Tube LLC, which manufactures tubular goods and line pipe for the oil and gas industry, filed for Chapter 11 bankruptcy protection on Tuesday, the latest victim of the depressed oilfield drilling market.

Boomerang, which has manufacturing facilities in Liberty, TX, is able to produce up to  360,000 tons/year of electric resistance welded tubes and line pipe. It also has heat treating capacity of up to 250,000 tons/year. In addition, Boomerang provides seamless pipe.

At the end of March the operator had total assets of close to $300 million with liabilities of about $461 million. A proposed restructuring would convert close to $214 million of debt under a term loan into equity, the company said Tuesday in its filing, U.S. Bankruptcy Court, District of Delaware [15-11247]. The reorganized company also plans to issue $55 million in new debt.

The list of operators now restructuring is getting longer. It includes American Eagle Energy Corp., BPZ Resources Inc., Cal Dive International Inc., Dune Energy Inc. and Quicksilver Resources Inc. (see Shale Daily, May 12; March 18; March 9; March 4). Thousands of people have been laid off from oilfield services (OFS) and exploration companies since the plunge last year in oil prices.

Credit analysts with Standard & Poor’s Ratings Services (S&P) said in a new report the outlook for the U.S. services and equipment sector is negative as producers tighten their capital spending.                               

“With drilling projects delayed or halted, demand for oilfield services has diminished, leaving oilfield services companies with fewer opportunities, and tempting business rivals to cut prices on existing and new contracts to maintain or improve market share, among other competitive tactics,” wrote primary credit analyst Christine Besset. “As a result, many oilfield services companies will display weaker financial performance and credit quality in 2015, despite layoffs and other cost-cutting measures.

“The bigger, more geographically diverse service providers with multiple business lines and stronger balance sheets will likely outperform smaller, more focused competitors.” Market conditions for the domestic OFS industry remain “weak overall for the rest of the year and won’t likely recover before the first half of 2016. As such, we are maintaining an overall negative outlook on the sector.”