Analyst predictions for cuts to fall base borrowing deepen for small and mid-cap exploration and production companies that depend on banker credit and support. Small and mid-cap exploration and production (E&P) companies have been bracing for the fall recalculation of their bank lines of credit since the post-spring markets continued to leave oil in the ground and commodity prices on the floor. And an industry brief from Raymond James and Associates suggests the cuts could be much deeper than those earlier this year. “We think fall borrowing base redeterminations will likely be more punitive this fall, leading to a 15 to 20 percent reduction in overall U.S. E&P bank credit facilities,” the analysts said in an Oct. 12 brief. Taking into account that company hedge books continue to fall off; proved undeveloped (PUD) reserves are likely to drop with the slowdown in drilling; the government is getting involved; and […]