E&P

To avoid the unavoidable price volatility that accompanies oil and natural gas development, states that have become dependent on energy revenues should consider creating permanent trust funds that overcome boom-and-bust price cycles, the Brookings Institution said Tuesday.

Seventy Seven Energy Inc., the onshore oilfield services business spun off from Chesapeake Energy Corp., said Tuesday it plans to restructure under a prepackaged voluntary bankruptcy protection plan to be filed in May after reaching agreement with lenders.

Oklahoma City is home to an upstream startup, overseen by former geology exploration executives of Devon Energy Corp.

To avoid the unavoidable price volatility that accompanies oil and natural gas development, states that have become dependent on energy revenues should consider creating permanent trust funds that overcome boom-and-bust price cycles, the Brookings Institution said Tuesday.

Oklahoma City is home to an upstream startup, overseen by former geology exploration executives of Devon Energy Corp.

Stone Energy Corp.’s credit facility has been reduced from $500 million to $300 million, resulting in a borrowing base deficiency of $175.3 million, which could lead to a breach of its lending agreement and default, the company said.

U.S. producers are looking past 2016, particularly on the pricing side, and they appear “surprisingly” bullish about the natural gas price outlook for 2017, which may be in part because only 30 rigs or so are in operation in the Marcellus Shale, analysts said Monday.

Stone Energy Corp.’s credit facility has been reduced from $500 million to $300 million, resulting in a borrowing base deficiency of $175.3 million, which could lead to a breach of its lending agreement and default, the company said.

With so many “variables and uncertainties” impacting the natural gas industry looking ahead, risk management will be key for market participants, according to BP Energy Co. CEO Orlando Alvarez.