Oil Goes Down, Bankruptcies Go Up - These 5 Frackers Could Be Next To Fall

So who will be next to fall? The list of troubled companies slumping toward Chapter 11 is growing. SandRidge Energy, Goodrich GR +% Petroleum, Swift Energy, Energy XXI, and Halcon Resources have all lost more than 90% of their market value since 2014, are larded up with too much debt, and would be lucky to survive the bust.

Shalemageddon is coming, albeit delayed a bit, a-la bank extend-and-pretend, 2007-crash style. This part of the article is especially funny to us:

Samson is the biggest bankruptcy of the oil bust so far, and a huge black eye to private equity giant KKR, which in 2011 led a $7.2 billion leveraged buyout of the company. The deal was a classic LBO: about $3 billion in equity backed by more than $4 billion in debt. It seemed like a good idea at the time... The sophisticated KKR team assumed it could squeeze a lot of value out of Samson, which since Schusterman's death in 2001 had been run by his daughter Stacy. Charles would be proud of her for inking the deal of a lifetime, selling the family jewels at what turned out to be the top of the market for shale-y acreage. It didn't take long for KKR and its equity partners to realize they had overpaid tremendously. The pain has been spread around. Japan's Itochu Corp. put up $1 billion in the LBO for a 25% equity stake. Two months ago it sold back its shares to Samson for $1.

Guess Itochu was ... [wait for it...] ... doing their part to spend spend spend for Abenomics! ;)