Oasis Petroleum (OAS) was already facing a grim future and the recent volatility in oil prices will make things even more challenging for the company. Oasis Petroleum carries high levels of debt and may face difficulties complying with the covenants under its revolving credit facility. The company is also facing significant near-term debt maturities. Meanwhile, the Houston, Texas-based shale oil producer’s liquidity continues to deteriorate as the company keeps burning cash and drawing funds from the revolving credit facility.
Image courtesy of Pixabay
The recent drop in oil prices has wreaked havoc on energy stocks.