Energy Analytics

How to capitalize on refinancing

Make more informed capital sourcing decisions

byShane Reddell

In the current landscape of heightened environmental and social consciousness, upstream oil and gas companies face significant challenges in achieving favorable refinancing for their existing credit facilities. These challenges are compounded by the recent volatility in the debt markets and instability in commodity prices, making it even harder for CFO and treasury teams to find favorable lenders.

A few implications of failing to secure the best possible terms during credit facility refinancing include:

  • Higher interest costs
  • Increased debt burden
  • Restrictive negative covenants

These consequences can strain an upstream operator’s ability to operate effectively and return capital to shareholders.

Refinancing in the dark

The refinancing process is plagued with data sprawl and obscured information.

  • The process requires the use of industry-specific information that is not commonly documented by many financial data providers.
  • Modern upstream credit facility agreements include covenants and terms such as production volume targets and ESG metrics that significantly impact debt pricing and interest rates, but often remain hidden deep within the agreements.

Transparent capital sourcing solution

It is critical to expose this data from the shadows, so treasury teams can have all the information and insights needed to identify the best refinancing terms relative to their peers. Enverus Capitalize provides a comprehensive dataset and industry-specific insights that treasury teams can leverage to streamline the lender identification and negotiation process. The platform’s actionable insights are instrumental in securing favorable refinancing terms, especially given the current market conditions and variables that influence refinancing decisions.

Credit facility A redetermination example

Let’s consider the case of a theoretical treasury team at an upstream operator in the process of extending their credit facility maturing in 18 months, leveraging Enverus Capitalize. First, the team identifies the refinancing terms, such as interest rates and operational covenants of their peers, and uncovers which lenders were actively increasing exposure to their peers.

recent-m&a-transactions-and-critical-valuation-metrics-from-enverus-capitalize-m&a-analytics
Figure: Recent M&A transactions and critical valuation metrics from Enverus Capitalize (M&A Analytics)

Next, once they are armed with this information, they can work closely with these lenders to negotiate the most optimal credit agreement and set up the most business-friendly bank group.

example-of-credit-facility-allocation view-for-multiple-operators-from-enverus-capitalize-ma-analytics
Figure: Example of credit facility allocation view for multiple operators from Enverus Capitalize (M&A Analytics).

Finally, the team confidently secures their refinancing agreements with a clear view of the terms and covenants.

Conclusion

Enverus Capitalize plays a crucial role for treasury teams hoping to navigate the opaque and intricate landscape of credit facility refinancing. By helping treasury teams avoid terms and conditions that lead to negative investor perceptions, future covenant violations and credit rating downgrades, Enverus Capitalize helps maximize the potential for increased returns to shareholders.

Picture of Shane Reddell

Shane Reddell

Shane is a principal consultant and joined Enverus in November 2020 after working in energy corporate banking at a large international bank. Shane has experience in the energy banking industry across all verticals. He earned a B.S. in Petroleum Engineering and an MBA from the University of Oklahoma. Shane is currently based in Austin, Texas.

Subscribe to the Enverus Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Related Content

How the One Big Beautiful Bill Act could change clean energy tax credit economics
Energy Transition
ByAlex Nevokshonoff, Enverus Intelligence® | Research (EIR) Contributor

The One Big Beautiful Bill Act (OBBBA), enacted on July 4, introduces sweeping changes to U.S. energy policy, significantly altering the tax credit landscape for clean energy projects.

Enverus Press Release - Upstream M&A climbs to $105 billion in 2024
Trading and Risk
ByKiana Cruz

In today’s fast-paced markets; traders don’t just need data, they need decisions. At EVOLVE 2025, the Trading & Risk session, “AI-Powered Trading Intelligence: Streamlining Decision Workflows,” spotlighted how artificial intelligence is evolving from a buzzword to a business-critical tool for...

data-center-demand
Energy Transition
ByAdam Robinson, Enverus Intelligence® | Research (EIR) Contributor

The Texas Tech University (TTU) System and Fermi America announced an 11 GW data center powered by a mix of natural gas, utility grid power, solar, wind and nuclear energy. The newly founded power company is building one of the...

Enverus Press Release - Enverus PRISM® now available for Europe
Trading and Risk
ByKiana Cruz

EVOLVE 2025 brought together leading voices across energy trading, analytics and clean fuels to unpack today’s most pressing market dynamics. From evolving benchmarks to retail analytics, one thing rang loud and clear: adaptation isn’t optional, it’s strategic. We attended four...

Black-lady-with-powerline
Energy Transition
ByCorianna Mah, Enverus Intelligence® Research

A massive heat dome swept across the eastern U.S. last week, driving temperatures into the triple digits and pushing the PJM Interconnection grid to its highest peak load since 2006.

Enverus Press Release - Redesigning ancillary markets: Reliability in a renewable future
Power and Renewables
ByRobin Grathwohl

Are you struggling to find substations with real injection potential? In this blog, you’ll learn how developers use planning models and historical ATC data in PRISM to identify viable POIs, avoid costly surprises in the queue and confidently move forward...

Enverus Press Release - Upstream M&A sails on with $30 billion in 2Q24
Minerals
ByEnverus

Digital oilfield advances have transformed many facets of the energy enterprise, yet when it comes to partner data sharing, the industry is stuck in a rut. Sensitive financial data and personally identifiable information (PII) are routinely sent to working interest,...

Class VI applications signal slowdown
Energy Transition
ByAmyra Mardhani

The U.S. Senate proposed amendments to the One, Big, Beautiful Bill, increasing the 45Q tax credit for CO2 enhanced oil recovery (EOR) from $60 to $85/tonne, matching the rate for permanent sequestration. From an economic standpoint, this shift could have...

Enverus Press Release - Tapping Alberta’s overlooked lithium brines
Oilfield Services
ByAdriana Bickford

The sun rises on a wellsite in North Dakota where hydraulic fracturing operations have been running through the night. A line of water-hauling trucks idles nearby, keeping a steady supply flowing downhole. Handwritten field tickets for those loads exchange hands,...

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Sign up for our Blog

Register Today

Sign Up

Power Your Insights

Connect with an Expert

Access Product Tour

Speak to an Expert