JAY DIRECTO / AFP/Getty Images
Countries that are net importers of crude oil and industries with high fuel costs are likely to see huge benefits as crude oil remains low.
China is second to the U.S. in crude oil consumption per day, so it will benefit from a lower import bill. And China began stockpiling oil at the end of 2014 as it looks to take advantage of future oil shocks, according to Time
MANJUNATH KIRAN / AFP / Getty Images
The second most populous country in the world consumes the fourth most barrels of oil per day. Cheaper fuel will help the country grow 7.8 percent, according to Time
, likely passing China.
ROMEO GACAD / AFP/Getty Images
Oxford Economics says amongst countries that import more crude than they produce, the Philippines stands to read the biggest rewards. The research firm expects the island nation to see nearly 2 percent GDP growth if oil prices stay low.
Craig Hartley / Bloomberg News
Oil and natural gas tankers are in high demand as the market gets flooded with cheap product. At the same time, low fuel prices are helping tankers keep costs low.
John Locher / Associated Press
Thanksgiving 2014 saw the highest travel volume since 2007. Lodging companies expect that trend to continue as more Americans take advantage of cheaper gasoline prices to take vacations.
Andy Newman / Carnival
Cruise lines stand to benefit not only from consumers having more money in their pocketbooks to spend on vactions, but also from cheaper fuel prices. Carnival said it expects to spend $475 million less in 2015 as crude oil prices come down.
JOHANNES EISELE / AFP / Getty Images
Similarly to cruise companies, airlines will benefit both from more Americans travelling and lower fuel costs.
Justin Sullivan / Getty Images
Giants like Nestlé and Kraft spend 10 to 15 percent of their cost of goods on frieght and fuel, according to a Moody's report.
BILL ROTH / AP
Logging and paper product companies
The costs for hauling logs, wood pulp and recycled waste paper are expected to fall with lower oil prices. And with heavily forrested countries like Canada and Norway seeing their currencies take a hit as oil prices crater, logging companies operating there will get stronger cost advantages.
Sanjit Das / Bloomberg
Amusement parks like Six Flags and Cedar Fair stand to have a booming summer this year if gasoline prices remain low and encourage Americans to travel, according to Moody's.
Richard Drew / Associated Press
Meahwile, countries that rely on oil production and industries that provide stand to lose the most amid a price crash.
Alexei Nikolsky / Associated Press
Russia is the second biggest oil producer in the world, and crude oil makes up 70 percent of the country's exports. According to the BBC
, Russia loses about $2 billion in revenue for ever $1 drop in the price of oil.
Meridith Kohut / Bloomberg
The South American country, which relies on its oil and gas industry for revenue, has seen its economy falter and may default on its debt.
PIUS UTOMI EKPEI / AFP / Getty Images
The Western African country needs oil prices to rise to more than $120 to balance its budget.
JOHN MCCONNICO / AP
Island countries hoping for an offshore oil boom
Small island countries like Greenland and Cyprus were banking on offshore drilling for oil and gas to boost their economies. With crude prices low and the cost of deepwater drilling still high, those prospects seem more unlikely
AL Grillo / Associated Press
The steel industry
Companies like US Steel and Evraz North America that provide pipeline products to the oil and gas industry will likely suffer as oil field spending falls.
Charles Pertwee / Bloomberg
The aerospace industry
Low oil prices will not benefit companies like Boeing and Airbus Group even as their airline customers get a boost -- cheap fuel will deincentivize airliners from buying next-generation, fuel-efficient equipment.
Houston-based Ultra Petroleum Corp. is trying to avoid filing for bankruptcy after reporting a net loss of $3.2 billion for the quarter on Thursday.
The natural gas producer is mired in $3.39 billion in debt after expanding its asset base in Wyoming in 2014.
Ultra Chairman, President and CEO Mike Watford said he is trying to restructure the company’s debt — “so far unsuccessfully” — in order to avoid filing in bankruptcy court, but he admitted Ultra needs external assistance.
“All of our debt is unsecured,” Watford said. “We’re in a unique position. It’s not all that pleasant. We need some help from the creditors to get across the finish line.
He said Ultra submitted a restructuring plan to its three main creditors in January, but he is still awaiting replies. “We would’ve anticipated a response weeks ago,” he said.
While a compromise is still possible, it likely would’ve occurred by now, said Michael Scialla, analyst at Stifel, Nicolaus & Company.
“I think it looks like bankruptcy is almost inevitable,” Scialla said. “It’s been a pretty long downward slide for them.”
Ultra was one of the premier energy stocks during the height of the shale gas boom in 2008 before the recession. The company traded for nearly $100 a share at the time. They stock sold for $50 a share in 2011, nearly $30 in 2014 and fell below $1 for the first time on Feb. 11. The selloff continued Thursday, driving the stock down to 39 cents a share, a decrease of 26 cents on the day.
Ultra “fell in love” with the Pinedale shale play in Wyoming, Scialla said, which remains strong, although other shale plays have surpassed it. As recently as 2014, Ultra paid $925 million and gave 155,000 acres in the Marcellus Shale to Royal Dutch Shell in exchange for Shell’s natural gas field operations in Pinedale.
“They didn’t diversify quickly, used too much debt and got backed into a corner,” Scialla said. “It’s a sad story.”
The company recently hired Kirkland & Ellis as legal advisers and Rothschild and Petrie Partners as financial advisers. Such hires are harbingers of major restructuring efforts, said Pearce Hammond, of Simmons & Company International, in an analyst note.
“This illustrates the intractable balance sheet problems the company faces,” Hammond wrote, arguing that Ultra has a “very dire outlook” overall.
Watford said Thursday that putting assets up for sale wouldn’t do enough good. He said the hope is to survive the current trough of low natural gas prices and start profiting again next winter.
This year’s relatively warm winter likely was the “last nail in the coffin” for Ultra with reduced natural gas demand, Scialla said.
Watford said Ultra is reducing its capital spending in 2016 by nearly 50 percent from $500 million down to $260 million.
Nearly all of Ultra’s $3.2 billion loss came from a $3.1 billion write down on the reduced value of its assets. While the impairment is a non-cash charge, it demonstrates the company’s reduced profitability. As such, Ultra’s adjusted net loss was $39 million.
In the final quarter of 2014, Ultra reported a $210 million profit. Ultra employed about 125 people as recently as 2014.