(Reuters) – Oasis Petroleum Inc OAS.O filed for Chapter 11 bankruptcy protection on Wednesday, the latest U.S. shale producer to seek court-aided restructuring as the energy industry reels under an unprecedented crash in oil prices due to the COVID-19 pandemic.
Shares of the company, which earlier this month skipped interest payments on some bonds, fell over 24% premarket.
Virus-led lockdowns, which decimated travel and fuel demand, have forced many shale producers to halt oil drilling, leaving them with no source of cash to repay their massive debts. Oasis had long-term debt of $2.76 billion with just $77.4 million in cash and cash equivalents as of June 30.
The company said it expects to cut debt by $1.8 billion through the restructuring and