Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

KBRA Releases Research – PDP Natural Gas and Oil ABS Primer

NEW YORK–(BUSINESS WIRE)–#KBRA–KBRA releases research on proved, developed, and producing (PDP) natural gas and oil securitizations. The report provides an overview of features observed in KBRA-rated PDP securitizations as well as a general discussion of this type of asset-backed security (ABS) transaction that experienced a meaningful increase in activity in 2022 with seven deals totaling $3.1 billion.


Key Takeaways

  • PDP securities are mainly collateralized by cash flows generated from PDP wells (sold into a trust) that have a record of producing commodities such as natural gas, natural gas liquids, and/or oil.
  • PDP ABS are a form of operating asset ABS where the interest and principal payments on the trust securities are repaid by the cash flows generated from the sale of commodities produced from the underlying assets used in the natural gas or oil producing business.
  • PDP transaction structures often feature overcollateralization, subordination, amortization, and accelerated paydown triggers. They also include hedge contracts that guarantee minimum prices for hedged volumes over a defined time horizon.

Click here to view the report.

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Contacts

Matthew Gardener, Director

+1 646-731-1276

matthew.gardener@kbra.com

Alan Greenblatt, Managing Director

+1 646-731-2496

alan.greenblatt@kbra.com

Thomas Berle Carman, Associate

+1 646-731-1241

thomas.carman@kbra.com

Eric Neglia, Senior Managing Director, Head of ABS Ratings

+1 646-731-2456

eric.neglia@kbra.com

Eric Thompson, Senior Managing Director, Head of Structured Finance Ratings

+1 646-731-2355

eric.thompson@kbra.com

Business Development


Rosemary Kelley, Senior Managing Director

+1 646-731-2337

rosemary.kelley@kbra.com

#FOLLOW US ON INSTAGRAM