Being in downtown Midland the last 14 years, I've seen some of everything you describe. There's the group of Concho dudes that didn't make the cut with COP so they went out and got a bunch of PE money, fancy offices and big salaries while they hunted for assets ... 18 months later, there's no salary, no office and no assets, and one ticked of PE backer.
Then there's another group, who have awesome office space which includes a bar with every bourbon you can think of and they let you sip on it while you pitch them your deal, so they see a hell of a lot of deals, and have done quite well.
At our small E&P company, my partners and I have refused to go the PE route, which means modest office space, no sports memorabilia, and I drive an 8 year old pickup. In spite of all that, over the years I have toed the line of bankruptcy several times, but managed to avoid it so far. I'm not totally responsible though, because I do have my obligatory place in Crested Butte, country club memberships, etc.