While bank borrowing remains light, publicly traded U.S. exploration and production (E&P) companies are boosting the amount of debt and equity issued via capital markets, taking advantage of continued low interest rates and recovered stock valuations.

debt and equity

Companies are using proceeds to pay down more expensive legacy debt but also positioning themselves to ramp up production should higher oil prices hold up amid an anticipated bounce this year in demand for transportation fuels derived from crude, the U.S. Energy Information Administration (EIA) said in a report Friday.

Based on company announcements, the agency estimated the amount of debt and equity issued by public E&Ps totaled $4.4 billion in March, marking a high point since August of 2020. Since September of last year, the...