Banking Community Remains Upbeat On Prospects For Independent Producers By Gregory DL Morris Special Correspondent B ankers who provide credit of all kinds to the independent upstream sector say producers have done a good job controlling costs and managing their balance sheets. In contrast to previous downturns, independents were quick, lenders say, to cut capital and operating expenses, and to curtail development to their best wells, rigs, and crews. That said, outlooks for autumn redeterminations range from cautious optimism to lingering concerns that a prolonged period of low crude prices, volatility, and constant pressure on margins may be too much for some undercapitalized companies. Bankers say they are eager to continue lending and that they are making new loans all the time. But those are for the highest-grade projects with solid economics at well capitalized companies. SEPTEMBER 2015 51