Leveraged

Independent producers have faced downturns before, but companies that are heavily leveraged — such as those that borrowed to gain entry into the cash-intensive natural gas shales and tight sands — face liquidity problems and “survival risks” without the full support of their lenders, Moody’s Investors Service reported last week.

Independent producers have faced downturns before, but companies that are heavily leveraged — such as those that borrowed to gain entry into the cash-intensive natural gas shales and tight sands — face liquidity problems and “survival risks” without the full support of their lenders, Moody’s Investors Service said in a report Monday.

North American producers of all sizes have reduced their spending and drilling plans this year, and some highly leveraged companies are attempting to hold their operations together in the face of low commodity prices and a tight credit market. The acquisition and divestiture market is slow, but some smaller players with solid balance sheets and liquidity are letting it be known that they might be interested in a few choice assets.

North American producers of all sizes have reduced their spending and drilling plans this year, and some highly leveraged companies are attempting to hold their operations together in the face of low commodity prices and a tight credit market. The acquisition and divestiture (A&D) market is slow, but some smaller players with solid balance sheets and liquidity are letting it be known that they might be interested in a few choice assets.

TXU Corp. shareholders Friday approved the leveraged buyout of the company by Texas Energy Future Holdings LP (TEF), marking the largest such deal to date.

TXU Corp. shareholders Friday approved the leveraged buyout of the company by Texas Energy Future Holdings LP (TEF), marking the largest such deal to date.

Tulsa-based Vintage Petroleum Inc., highly leveraged with Argentina assets negatively affected by the country’s economic problems, Tuesday said it is turning down a restructuring offer by 8.9% shareholder BP Capital Energy, which has proposed, among other things, that Vintage sell all of its North American assets and be based only in Latin America.