Borrowing Base Redeterminations Survey Results Fall 2024

This document is a report detailing the results of the Haynes Boone Borrowing Base Redeterminations Survey conducted in November 2024. The survey included 57 respondents from various sectors, including oil and gas producers, financial institutions, and private equity firms. The primary objective of the survey is to provide insights into the expectations of lenders and borrowers regarding borrowing base redeterminations amid ongoing price uncertainties in the commodity markets. The report outlines key findings, indicating that most industry participants expect borrowing bases to remain flat in the fall of 2024 due to market volatility and geopolitical tensions. Additionally, the survey highlights varied responses regarding hedging percentages, with some producers opting for lower hedging levels. The report also discusses anticipated capital sourcing strategies and the cautious approach of oil-weighted producers in setting their 2025 drilling budgets, reflecting a conservative outlook in light of current economic conditions.