Whiting Petroleum sees more than $1 billion in credit line cuts | Reuters

Whiting Petroleum Corp expects its credit line to be cut by more than $1 billion in an early May loan review, Chief Executive Jim Volker said on Thursday, the latest industry fallout from low oil prices crimping margins and fueling massive spending cuts.The semi-annual review of credit access for small- and medium-sized oil companies comes in the wake of a roughly 60 percent drop in crude prices since 2014. Because loans tends to be backed by the value of oil reserves, falling crude prices erode the underlying collateral and force a redetermination.Whiting’s credit line cut, if forecasts hold, would prove to be one of the biggest of this price downturn and be larger than executives themselves expected as recently as last month.

Source: Whiting Petroleum sees more than $1 billion in credit line cuts | Reuters

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