Buddy Clark in the Wall Street Journal: Noble’s Rosetta Deal Is OPEC’s Problem

05/13/2015

OPEC has apparently all but given up on oil prices getting back to triple digits and staying there over the next decade, in part because of the U.S. shale boom. Does Noble Energy’s $2.1 billion acquisition of Rosetta Resources offer the Organization of the Petroleum Exporting Countries a glimmer of hope?...

It is possible the merger of these two shale drillers will ultimately aid a rebound in oil prices. For now, though, it demonstrates the exploration-and-production sector’s ability to keep going in adverse conditions... 

Law firm Haynes and Boone found in a recent survey that roughly two-thirds of E&P borrowers are likely to see lending lines based off proven reserves cut in spring reviews. Yet Buddy Clark, a partner at the firm, sees E&P companies resorting to such things as second-lien loans provided by private equity as an alternative.

Excerpted from The Wall Street Journal Heard on the Street blog. To read the full article, click here.

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