Post Tagged with: "equity offerings"

Energy Industry: I’d Rather Not Be in Your Debt Forever

Energy Industry: I’d Rather Not Be in Your Debt Forever

The Wrath of Godzilla Oil and gas companies have become wary of debt like the residents of Odo feared the wrath of Godzilla, rising up from the sea to wreak havoc at any moment and smashing buildings in a single bound. In a highly capital intensive industry like oil and gas development, debt is a necessity. Bank debt and corporate bonds are a means of acquiring the capital required to drill thousands of wells to obtain the fuels that generate the energy and products on which modern society depends. Since the downturn in commodity prices, banks have tightened their belts and reduced borrowing bases while the market has been less receptive to new debt offerings, making the funding of capital programs more difficult. Despite these expected and anticipated measures to mitigate losses in the lending industry, the breadth of what many assumed would be a bloodbath of bankruptcies or a[Read More…]