October 26, 2015 – OilPrice.com
Banks Give A Stay Of Execution On Oil And Gas Sector
By Dave Forest
There have been a lot of observers (including myself) worried lately about debt in the oil patch, with suspicions running high that lower oil prices will mean cuts to bank lines -- and possible bankruptcies for some cash-strapped producers.
But a study released late last week by industry insiders shows petro-finances are doing much better than expected.
As reported by RBN Energy, cuts to E&P banklines have so far been small. With borrowing bases for 17 companies reporting so far having decreased by an average of only 4 percent.
RBN found that results from annual credit reviews were mixed for these 17 firms. With only six companies having their credit lines decreased by the bank. By contrast, eight firms saw their credit lines remain unchanged -- while three of the 17 actually had their credit increased by bankers.
Read the full story here: http://oilprice.com/Energy/Energy-General/Banks-Give-A-Stay-Of-Execution-On-Oil-And-Gas-Sector.html
