Brad Boyd, Portfolio Manager of the Payden Global Income Opportunities Fund, speaking in Sydney to a group of financial advisers.

Speaking at an adviser roadshow in Sydney yesterday, Payden & Rygel senior vice president Brad Boyd said exploration and production (E&P) companies are under a “lot of pressure – and prices have reflected it”.

The break-even oil price for the ‘best’ E&P companies in the high-yield space is currently US$45 a barrel, Mr Boyd said. At the time of writing the West Texas Intermediate price was US$30.66.

“That’s the best ones. Everyone else needs to be higher – 60s, 70s, 80s,” Mr Boyd said.

“So in our opinion, a lot of these companies are going to be gone. I mean they’re just not going to exist.

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