United Rentals (URI), which, as its name implies, rents out equipment, in large part to the energy industry, offers a glimpse into the balance-sheet stresses being felt in the sector. According to a report by KDP Investment Advisors, which specializes in high-yield credits, while United Rentals met expectations for earnings before interest, taxes, depreciation, and amortization, its balance sheet showed that cash balances and liquidity declined as the company drew on bank-credit lines to fund the redemption of notes and stock repurchases. In addition, United Rentals announced a new, $1 billion share repurchase, which may be more propitiously timed given that the stock price is down nearly 37% this year.
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