Pricing widens significantly
for borrowing base E&P revolvers in 2020

Chart

Lending to the oil and gas upstream sector at US$17.3bn is down 78% so far this year from the total logged in 2019. With most of the lending to this sector coming from banks through reserve-based revolvers, many issuers have seen the availability tighten under these credit lines, as the value of reserves, which are tied to oil and gas prices have been on the decline.