Low Prices,Cool Credit Markets Putting Mid-Cap Gas Producers in Major Bind

摘要

Mid-cap US gas producers have experienced a general downhill slide that has only intensified in the past year as valuations tied to commodity prices tumble and access to financing has all but dried up.And there is very little they can do about it in the short term.The pit that many large independent and public gas producers find themselves in could be much too deep to escape without traditional lifelines,such as credit refinancing and normal borrowing.But those options are not on the table today,and likely won't be until gas prices rise to levels that offer acceptable rates of return.Mid-cap oil companies find themselves in a similar situation,but their outlook isn't as dire.A recent Stifel Equity Research report found mid-cap gas company valuations are down 59% year to date while mid-cap oil firms were off43%.