Random Update On Oil And Gas Producers' Borrowing Bases -- Redeterminations Effective April 1, 2015

Disclaimer: this is not an investment site. Do not make any financial or investment decisions based on anything you read here or think you may have read here.

Earlier last month, many sources reminded us that the mid-year credit re-determinations would be reported in April, including Oil & Gas Investor:

Oil and gas producers’ bank-facility borrowing bases may decline an average of 30% during reserve-based redeterminations this and next month, forecasts Raymond James & Associates Inc. securities analyst Kevin Smith.

“Needless to say, just about everybody is making sizable spending cuts, though the magnitude varies, depending on each company’s balance-sheet flexibility, asset-base characteristics and management preferences,” Smith reports of producers’ response in advance of their twice-a-year meeting with bankers.

WTI has settled in at about $50 in the past month, but “the potential pain for U.S. E&P companies is far from over.” He forecasts that significant borrowing-base reductions could “kick off a wave of mergers, property deals and even some corporate restructuring.”

So, with that in mind, let's begin tracking that data if we happen to run across it.

First up, Eagle Rock Energy: decreased from $320 to $270 million, or 16%.

Second up, Mid-Continent Energy Partners: from $240 to $220 million, or about 9%.

********************

April 6, 2015

Callon Petroleum announces reaffirmation of borrowing base: Co announced that the borrowing base under its senior secured revolving credit facility remained unchanged at $250 mln following its lenders' regularly scheduled semi-annual redetermination process. There were no other changes to the terms of the credit facility resulting from this borrowing base redetermination.