Gas Producers’ Credit Lines Shrink With Price: Corporate Canada
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Perpetual Energy Inc., which owns almost a decade worth of natural gas reserves in Canada, has lost half its market value in five months as the price of the fuel has plummeted. Now it’s lost part of its credit line too.
With natural gas reaching its lowest price in more than a decade this spring, Calgary-based Perpetual’s credit lines were cut by 10 percent or C$20 million ($20 million) on March 1 by banks including the Bank of Montreal, reflecting the drop in value of the company’s reserves.