Midstates Petroleum Co. (ticker MPO)
Linn Energy LLC, (ticker LINE) and
SandRidge Energy Inc. (ticker SDOC)
Midstates Petroleum Co., Linn Energy LLC and SandRidge Energy Inc. in recent weeks drew down the full balance of their revolving credit lines, they said, collectively borrowing more than $1.5 billion to build up cash cushions as the oil slump heads into its second year.
Other producers also are weighing such a move, said bankers and lawyers who advise energy companies. Fully drawing down on a revolving loan can signal a company is building up its cash reserves ahead of a bankruptcy filing or that it is worried lenders may at some point cut off access to credit.