Houston-based Eagle Pipe LLC filed for bankruptcy on Oct. 5 after a subsidiary of Irving, Texas-based Exxon Mobil Corp. canceled its pending orders from the company, the Houston Business Journal reported. Exxon upstream subsidiary XTO Energy Inc. represented about half of Eagle Pipe’s revenue stream when it terminated its business relationship with Eagle Pipe at the end of June, Eagle Pipe President Jared Light said in a declaration to the bankruptcy court. As social distancing cut into demand for manufacturing and transportation fuels, upstream oil and gas companies started pulling back on spending plans, causing a decline in drilling activity. That cut into demand for oil country tubular goods, which Eagle Pipe supplies to its customers. It was in this environment that XTO cancelled all its pending orders from Eagle Pipe, including one that was set to generate $225 million in revenue for the company, Light said. Eagle Pipe petitioned the Southern District of Texas Bankruptcy Court for chapter 11 protection on Oct. 5. At the time, the company owed about $20.7 million to creditors. Two of its suppliers are also claiming interest in about $11 million in Eagle Pipe’s inventory.
