Energy companies face a second, harsher “financial reckoning” in October when banks re-evaluate the value of oil-and-gas properties, according to The Wall Street Journal.
“It’s raining and it’s going to rain for a long time. We’re all going to get wet. A few people are going to drown,” Freeport-McMoRan Inc. Vice Chairman Jim Flores told the Journal. “You just have to make it to the other side.”
That may prove difficult. Crude prices have settled in the $40s. Despite slashing their budgets, many drillers are still losing money.