With the oil and gas industry and Wall Street, public sentiment changes quickly. After over 100 oil- and gas-related companies declared bankruptcy over the past two years, financial analysts are jumping back on the bandwagons of some of the companies emerging from bankruptcy.
A recent Barron’s article profiles six of these oil and gas companies that have come out of bankruptcy since last summer as value purchases. These companies are Linn Energy, Ultra Petroleum, SandRidge Energy, Halcon Resources, Midstates Petroleum and Goodrich Petroleum.
Barron’s was a consistent critic of the old Linn Energy. Now, Barron’s says the post-bankruptcy Linn Energy is much different and aims to be a growth-oriented exploration and production company rather than a yield play. Similarly, an analyst in the report states you can buy the SandRidge stock for less than the value of its proven reserves. However, prior shareholders received little or nothing in these new companies.