Mounting debt among oilfield service companies coupled with soft oil prices squeezes the sector. Oil prices hovering close to $40 per barrel is compounding the problems that dozens of struggling oilfield service and drilling companies face in a market that might not bounce back until late next year. The strained oilfield services (OFS) sector faces a debt wall of about $110 billion that will mature or expire during the next five years, according to a report from Moody’s Investors Service released Aug. 9. Sixty-seven OFS companies have more than $60 billion in bond and term loans, about half of which will mature between now and 2019. More than a third of those companies will have a debt-to-EBITDA (earnings before interest, tax, depreciation and amortization) ratio above 10 this year. That’s twice what is considered a strong ratio, and consequently, those companies have the most risk of default. “There’s so […]