Gneiss Energy‘s Senior Adviser Andy Hartree featured on Global Trade Review (GTR) this week, discussing how E&P companies are reviewing and restructuring loan agreements in a bid to free up capital and ensure long-term security.
“While banks take security over assets, the basis of their lending decisions is always the ability of the assets to generate the necessary cash to repay the loan. But they are also making an investment at a fixed return, regardless of what the market does. Their valuation premises are therefore all conservative, including a view of oil or gas prices that mean they get paid out even in the worst-case scenario.”
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