Haynes Boone Partner Kraig Grahmann spoke with Oil and Gas Investor and Hart Energy as regional banks across the U.S. are swooping in and grabbing market share in oil and gas lending as large European banks’ climate fears have made them squeamish toward the space.
“The oil market has newfound positivity, with borrowing base increases possible for some producers,” Grahmann told Oil and Gas Investor. “But we have a ‘best of times, worst of times’ split, with distress in natural gas markets countering the oil boom.”
Capital remains available to the upstream space, Grahmann told Hart Energy, but companies must recognize that the sources have changed. Diversified New York City-based private equity funds, pensions and European banks are being replaced by family offices, private credit term loan providers and regional banks, all of which are significantly more active today than just a few years ago, Grahmann said.
“If a company recognizes this shift and develops relationships with the new players, they will improve their odds of attracting capital,” he said.
To read the full article from Oil and Gas Investor, click here.
To read the full article from Hart Energy, click here.
