WPX Energy Secures $1.2 billion on Credit Facility Amid Oil Slump
Oil and gas producer WPX Energy Inc said it received commitments of $1.2 billion under a credit facility, at a time when much of the industry is bracing itself for a fall in credit lines.
WPX Energy’s announcement comes a week after peer Whiting Petroleum Corp warned of a more than $1 billion cut to its credit line in an early May loan review.
WPX Energy said on Friday it had an initial borrowing base of $1.025 billion.
The company had said in August that total commitments under its revolving credit facility had increased to $1.75 billion from $1.5 billion.
Energy companies are largely expected to see their credit lines drop after the upcoming semi-annual review of credit access for small- and medium-sized oil companies.
A more than 60 percent drop in crude prices since mid-2014 has eroded the value of collateral for loans backed by the value of oil reserves, forcing a redetermination.
A few oil and gas producers including Halcon Resources Corp and Energy XXI Ltd have already announced a fall in their borrowing bases.
