Factbox: Lenders rein in financing for shale drillers after oil collapse

Bonterra Energy

26/06/2020 19:28

June 26 (Reuters) - Lenders have slashed the amount of credit made available to shale drillers by a over a quarter
following an unprecedented fall in oil prices this year due to the coronavirus-induced demand hit.
    Oil and gas producers borrow money against the value of their reserves in the ground or reserve-based lending (RBL)
and have to negotiate every six months with their bankers to decide how much credit they should get.
    Of the 16 producers that have announced the results of their spring RBL redetermination (RD) season, only two
escaped without any reduction to their borrowing capacity.
    Here are the results from the spring season RBL redeterminations announced so far in alphabetical order. 

           Company               RIC      Borrowing    Borrowing   % Drop     Credit      Credit     % drop      Total
                                            Limit        Limit               Already    available   available  Debt (in
                                         Pre-RD (in   Post-RD (in            Borrowed    Post-RD     credit      Mln)
                                            Mln)         Mln)                (in Mln)    (in Mln)              
 Abraxas Petroleum Corp         AXAS.O       $135.00      $102.00  -24.44%      $94.00       $8.00    -80.49%    $200.88
 Antero Resources Corp          AR.N       $4,500.00    $2,850.00  -36.67%   $1,612.00   $1,238.00    -57.13%  $3,708.00
 Bonanza Creek Energy Inc       BCEI.N       $375.00      $260.00  -30.67%      $59.00     $201.00    -36.39%     $59.00
 Centennial Resources           CDEV.O     $1,200.00      $700.00  -41.67%     $235.80     $464.20    -51.86%  $1,118.00
 Development Inc                                                                                               
 Chaparral Energy Inc           CHAP.N       $325.00      $175.00  -46.15%     $250.00     -$75.00   -200.00%    $437.00
 Chesapeake Energy Corp         CHK.N      $3,000.00    $2,300.00  -23.33%   $1,989.00     $311.00    -69.24%  $9,163.00
 Contango Oil & Gas Company     MCF.A        $145.00       $95.00  -34.48%      $84.70      $10.30    -82.92%     $82.80
 Earthstone Energy Inc          ESTE.N       $325.00      $275.00  -15.38%     $152.00     $123.00    -28.90%    $152.10
 Lonestar Resources US Inc*     LONE.O       $290.00      $286.00   -1.38%     $267.40      $18.60    -17.70%    $255.10
 Oasis Petroleum Inc*           OAS.O      $1,300.00      $600.00  -53.85%     $540.90      $59.10    -92.21%  $2,778.00
 Oil States International Inc   OIS.N        $350.00      $200.00  -42.86%      $90.80     $109.20    -57.87%    $239.00
 Parsley Energy Inc             PE.N       $2,700.00    $2,700.00    0.00%     $306.70   $2,393.30      0.00%  $3,000.00
 Pipestone Energy Corp^^        PIPE.V       $165.00      $165.00    0.00%        $135     -$19.00      0.00%    $155.60
 Ring Energy Inc                 REI.A       $425.00      $375.00  -11.76%     $375.00       $0.00   -100.00%    $366.90
 Surge Energy Inc^^             SGY.TO       $256.52      $245.50   -4.30%     $223.50      $22.00    -33.37%    $301.80
 Talos Energy Inc*              TALO.N     $1,150.00      $985.00  -14.35%     $663.60     $321.40    -33.92%  $1,033.00
                                                                                                                        
 Total                                     $16,641.5    $12,313.5     -26%               $5,234.10     -45.3%           
 Average % change                                                  -24.46%                             -60.5%           
    * Oasis Limit as effective July 1
    ** Lonestar amended facility to set redetermination on/around July 1, could face further cut
    *** All figures in USD
    ^^ Converted from C$ to US$; $1 = 1.3644 Canadian dollars
        
    Source: Company filings, press releases, Refintiv Eikon

 (Reporting by Arunima Kumar and Shariq Khan in Bengaluru; Editing by Sweta Singh and Arun Koyyur)
 ((Shariq.Khan@thomsonreuters.com; Within U.S.+1 646 223 8780, outside U.S. +91 80 6182 2681; Twitter: @shariqrtrs;))