PetroEquity Signal podcast
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21:44Higher sovereign yields are changing the cost of capital across oil and gas, but the effect depends on how each company is financed.
This episode begins with the pressure building in government bond markets and explains how higher base rates feed into floating debt, fixed-rate refinancing and corporate credit spreads. It then moves into oil and gas, where financing costs can remain high even if oil prices fall after the current Iran-driven disruption.
We look at resource duration, the potential shift from short-cycle shale towards more capital-intensive deepwater investment, and what this means for Tullow, Kosmos, Energean, Harbour Energy and BP. The discussion finishes with the other side of tighter capital markets: stronger balance sheets may gain an opportunity to acquire assets and resources from companies that can no longer finance them as efficiently.