On Thursday, we outlined how America’s heavily indebted E&P companies are about to be “zero hedged” when the downside protection that accounted for some 15% of Q1 revenue for nearly half of North American O&G operations rolls off.
In short, the hedges that had, until now anyway, helped to forestall a terminal cash crunch are set to expire, which will have the knock-on effect of making it more difficult for the companies to maintain crucial credit lines with banks.